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Investments of Operating Entities and Consolidated Funds - (Tables)
 3 Months Ended
Mar. 31, 2020
Investment Holdings [Line Items]  
Marketable Securities
As of March 31, 2020 and December 31, 2019, securities owned, at fair value consisted of the following:
As of March 31, 2020As of December 31, 2019
 (dollars in thousands)
Common stock$648,134  $1,546,484  
Preferred stock14,700  12,656  
Warrants and rights23,491  22,109  
Government bonds (a)61,198  15,916  
Corporate bonds (c)16,089  25,500  
Convertible bonds (b)2,786  2,500  
Term loan (*)—  1,067  
Trade claims (*)9,648  7,320  
$776,046  $1,633,552  
(a)As of March 31, 2020, maturities ranged from May 2020 to February 2048 and interest rates ranged from 0% to 8.75%. As of December 31, 2019, maturities ranged from January 2020 to June 2020 with an interest rate of 0%.
(b)As of March 31, 2020, maturities ranged from April 2020 to March 2022 with an interest rate of 8%. As of December 31, 2019, maturities ranged from April 2020 to March 2022 with an interest rate of 8%.
(c)As of March 31, 2020, maturities ranged from May 2020 to October 2027 and interest rates ranged from 0% to 15.5%. As of December 31, 2019, maturities ranged from January 2020 to May 2037 and interest rates ranged from 0% to 15.0%.
* The Company has elected the fair value option for securities owned, at fair value with a fair value of $9.6 million and $8.4 million, respectively, at March 31, 2020 and December 31, 2019.
Schedule of Derivative Instruments
The Company's long and short exposure to derivatives is as follows:
Receivable on derivative contractsAs of March 31, 2020As of December 31, 2019
 Number of contracts / Notional ValueFair valueNumber of contracts / Notional ValueFair value
 (dollars in thousands)
Currency forwards$58,737  1,010  $—  —  
Swaps$232,713  24,523  $383,752  2,911  
Options other (a)402,281  58,334  550,188  60,066  
$83,867  $62,977  
(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options.
Payable for derivative contracts
As of March 31, 2020As of December 31, 2019
 Number of contracts / Notional ValueFair valueNumber of contracts / Notional ValueFair value
 (dollars in thousands)
Futures$5,045  $87  $10,224  $217  
Currency forwards$108,189  1,883  $77,790  851  
Swaps$202,650  9,469  $607,717  23,169  
Options other (a)222,709  60,946  306,306  36,524  
$72,385  $60,761  
(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options.
The following tables present the gross and net derivative positions and the related offsetting amount, as of March 31, 2020 and December 31, 2019. This table does not include the impact of over-collateralization.
Gross amounts not offset in the Condensed Consolidated Statements of Financial Condition
Gross amounts recognizedGross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)Net amounts included on the Condensed Consolidated Statements of Financial ConditionFinancial instrumentsCash Collateral pledged (b)Net amounts
(dollars in thousands)
As of March 31, 2020
Receivable on derivative contracts, at fair value$92,755  $8,888  $83,867  $—  $25,532  $58,335  
Payable for derivative contracts, at fair value81,273  8,888  72,385  —  11,351  61,034  
As of December 31, 2019
Receivable on derivative contracts, at fair value$66,217  $3,240  $62,977  $—  $2,911  $60,066  
Payable for derivative contracts, at fair value64,001  3,240  60,761  —  24,020  36,741  
(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.
(b)Includes the amount of collateral held or posted.
Schedule of Other Investments
As of March 31, 2020 and December 31, 2019, other investments included the following:
As of March 31, 2020As of December 31, 2019
 (dollars in thousands)
Portfolio funds, at fair value (1)$113,627  $114,504  
Carried interest (2)20,729  30,360  
Equity method investments (3)28,918  40,858  
$163,274  $185,722  
Schedule of Other Investments, Portfolio Funds
The Portfolio Funds, at fair value as of March 31, 2020 and December 31, 2019, included the following:
As of March 31, 2020As of December 31, 2019
(dollars in thousands)
Starboard Value and Opportunity Fund (c)(*)$35,299  $37,895  
Formation8 Partners Fund I, L.P. (f)32,837  33,613  
RCG Longview Debt Fund V, L.P. (g)(*)1,243  1,732  
Cowen Healthcare Investments II LP (i) (*)13,907  14,652  
Eclipse Ventures Fund I, L.P. (b)4,287  3,960  
HealthCare Royalty Partners LP (a)(*)1,307  1,326  
Lagunita Biosciences, LLC (d)5,037  4,802  
Starboard Leaders Fund LP (e)(*)1,429  1,560  
Eclipse SPV I, LP (j)(*)1,637  1,447  
TriArtisan ES Partners LLC (k)(*)1,047  1,082  
TriArtisan PFC Partners LLC (l)(*)528  909  
RCG Longview Equity Fund, LP (g) (*)852  835  
HealthCare Royalty Partners II LP (a)(*)1,796  1,781  
Cowen Healthcare Investments III LP (i)(*)1,189  1,398  
Difesa Partners, LP (h) (*)540  508  
Other private investment (m)(*)8,245  4,448  
Other affiliated funds (n)(*)2,447  2,556  
$113,627  $114,504  
* These Portfolio Funds are affiliates of the Company.
The Company has no unfunded commitments regarding the Portfolio Funds held by the Company except as noted in Note 16.
(a)HealthCare Royalty Partners, L.P. and HealthCare Royalty Partners II, L.P. are private equity funds and therefore distributions will be made when cash flows are received from the underlying investments, typically on a quarterly basis.
(b)Eclipse Ventures Fund I, L.P. is a private equity fund which invests in early stage and growth hardware companies. Distributions will be made when the underlying investments are liquidated.
(c)Starboard Value and Opportunity Fund permits quarterly withdrawals upon 90 days' notice.
(d)Lagunita Biosciences, LLC, is a healthcare investment company that creates and grows early stage companies to commercialize impactful translational science that addresses significant clinical needs, is a private equity structure and therefore distributions will be made when the underlying investments are liquidated.
(e)Starboard Leaders Fund LP does not permit withdrawals, but instead allows terminations with respect to capital commitments upon 30 days' prior written notice at any time following the first anniversary of an investor's initial capital contribution.
(f)Formation8 Partners Fund I, L.P. is a private equity fund which invests in early stage and growth transformational information and energy technology companies. Distributions will be made when the underlying investments are liquidated.
(g)RCG Longview Debt Fund V, L.P. and RCG Longview Equity Fund, LP are real estate private equity structures. The timing of distributions depends on the nature of the underlying investments and therefore will be made either quarterly or when the underlying investments are liquidated.
(h)Difesa Partners, LP permits semi-annual withdrawals occurring on or after the anniversary of initial contribution upon 90 days written notice.
(i)Cowen Healthcare Investments II LP and Cowen Healthcare Investments III LP are private equity funds.  Distributions are made from the fund when cash flows or securities are received from the underlying investments. Investors do not have redemption rights.
(j)Eclipse SPV I, L.P. is a co-investment vehicle organized to invest in a private company focused on software-driven automation projects.  Distributions will be made when the underlying investments are liquidated.
(k)TriArtisan ES Partners LLC is a co-investment vehicle organized to invest in a privately held nuclear services company. Distributions will be made when the underlying investment is liquidated.

(l)TriArtisan PFC Partners LLC is a co-investment vehicle organized to invest in a privately held casual dining restaurant chain. Distributions will be made when the underlying investment in liquidated.
(m)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.
(n)The majority of these investment funds are affiliates of the Company or are managed by the Company and the investors can redeem from these funds as investments are liquidated.
Carried Interest
The carried interest as of March 31, 2020 and December 31, 2019, included the following:
As of March 31, 2020As of December 31, 2019
(dollars in thousands)
Cowen Healthcare Investments II LP (*)$14,798  $23,759  
Other private investment (a) (*)3,737  4,737  
RCG IO Renergys Sarl1,740  1,251  
Ramius Multi-Strategy Fund LP (*)454  613  
$20,729  $30,360  
(a)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.
* These carried interest balances are earned from affiliates of the Company.
Schedule Equity Method Investments
The following table summarizes equity method investments held by the Company:
As of March 31, 2020As of December 31, 2019
(dollars in thousands)
Surf House Ocean Views Holdings, LLC$4,000  $7,804  
Starboard Value LP18,527  24,292  
RCG Longview Debt Fund V Partners, LLC1,737  2,889  
RCG Longview Management, LLC105  583  
HealthCare Royalty GP, LLC 143  108  
HealthCare Royalty GP II, LLC 304  302  
RCG Longview Debt Fund IV Management, LLC330  331  
HealthCare Royalty GP III, LLC 2,237  2,230  
RCG Longview Equity Management, LLC250  105  
HCR Stafford Fund GP, LLC125  880  
Liberty Harbor North292  292  
Other868  1,042  
$28,918  $40,858  
Schedule of Securities Sold, Not yet Purchased As of March 31, 2020 and December 31, 2019, securities sold, not yet purchased, at fair value consisted of the following:
 As of March 31, 2020As of December 31, 2019
 (dollars in thousands)
Common stock$460,059  $425,448  
Corporate bonds (a)4,402  5,933  
Government bonds (b)48,073  1,950  
Preferred stock6,405  3,686  
Warrants and rights8,532  14,819  
$527,471  $451,836  
(a)As of March 31, 2020, the maturities ranged from April 2020 to May 2067 and interest rates ranged from 5.00% to 6.75%. As of December 31, 2019, the maturities ranged from January 2024 to May 2037 and interest rates ranged from 4.88% to 6.25%.
(b)As of March 31, 2020, the maturities ranged from October 2024 to February 2048 and interest rates ranged from 6.25% to 8.75%. As of December 31, 2019, the maturities ranged from October 2024 to March 2038 and interest rates ranged from 7.00% to 8.25%.
Schedule of Assets and Associated Liabilities Accounted for as Secured Borrowings
The following tables present the contractual gross and net securities borrowing and lending agreements and securities sold under agreements to repurchase and the related offsetting amount as of March 31, 2020 and December 31, 2019.
Gross amounts not offset on the Condensed Consolidated Statements of Financial Condition
Gross amounts recognized, net of allowanceGross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)Net amounts included on the Condensed Consolidated Statements of Financial ConditionAdditional Amounts AvailableFinancial instrumentsCash Collateral pledged (b)Net amounts
(dollars in thousands)
As of March 31, 2020
Securities borrowed$971,430  $—  $971,430  $—  $947,184  $—  $24,246  
Securities loaned997,794  —  997,794  —  928,973  —  68,821  
Securities sold under agreements to repurchase57,420  —  57,420  —  47,442  14,043  (4,065) 
As of December 31, 2019
Securities borrowed$754,441  $—  $754,441  $—  $751,913  $—  $2,528  
Securities loaned1,601,866  —  1,601,866  —  1,585,036  —  16,830  
Securities sold under agreements to repurchase23,244  —  23,244  —  27,384  —  (4,140) 
(a)Includes financial instruments subject to enforceable master netting provisions that are permitted to be offset to the extent an event of default has occurred.
(b)Includes the amount of cash collateral held/posted.
Investments Classified by Contractual Maturity Date The following tables present gross obligations for securities loaned and securities sold under agreements to repurchase by remaining contractual maturity and class of collateral pledged as of March 31, 2020 and December 31, 2019:
Open and OvernightUp to 30 days31 - 90 daysGreater than 90 daysTotal
(dollars in thousands)
As of March 31, 2020
Securities loaned
    Common stock$775,765  $—  $—  $—  $775,765  
    Corporate bonds222,029  —  —  —  222,029  
Securities sold under agreements to repurchase—  49,543  7,878  —  57,421  
As of December 31, 2019
Securities loaned
    Common stock$1,343,478  $—  $—  $—  $1,343,478  
    Corporate bonds258,388  —  —  —  $258,388  
Securities sold under agreements to repurchase—  —  23,244  —  $23,244  
Fair Value, Concentration of Risk
Investment's percentage of the Company's stockholders' equity
IssuerSecurity TypeCountryIndustryPercentage of Stockholders' EquityMarket Value
(dollars in thousands)
As of March 31, 2020  LinkemEquityItalyWireless Broadband  9.36 %$73,437  
As of December 31, 2019LinkemEquityItalyWireless Broadband  9.53 %$77,142  
Significant subsidiary - equity method [Member]  
Investment Holdings [Line Items]  
Schedule Equity Method Investments
For the period ended March 31, 2020, certain investments subject to Regulation S-X Rule 10-01(b)(1) of the SEC guidance held by the Company in aggregate have met the significance criteria as defined thereunder. As such, the Company is required to present summarized financial information for these significant investees as of March 31, 2020 and December 31, 2019 and for the three months ended March 31, 2020 and 2019, and such information is as follows:
Other equity method investmentsAs of March 31, 2020As of December 31, 2019
(dollars in thousands)
Assets$793,662  $818,193  
Liabilities26,054  77,092  
Equity$767,608  $741,101  

Three Months Ended March 31,
20202019
(dollars in thousands)
Revenues
$58,920  $28,001  
Expenses(11,661) (27,522) 
Net realized and unrealized gains (losses)(49,113) 91,334  
Income (loss) before income taxes(1,854) 91,813  
Income tax expense(725) (705) 
Net income$(2,579) $91,108  
Consolidated Funds  
Investment Holdings [Line Items]  
Marketable Securities
As of March 31, 2020 and December 31, 2019, securities owned, at fair value, held by the Consolidated Funds consisted of the following:
As of March 31, 2020As of December 31, 2019
 (dollars in thousands)
     Preferred stock$4,393  $4,393  
     Common stock317,839  200,306  
     Government bonds (a) 24,998  161,607  
     Corporate bonds (b)2,655  3,405  
     Warrants and rights5,611  5,567  
$355,496  $375,278  
(a)As of March 31, 2020, the maturity was April 2020 with an interest rate of 0%. As of December 31, 2019, maturities ranged from February 2020 to March 2020 and interest rates were 0%.
(b)As of March 31, 2020, the maturity was May 2026 with an interest rate of 6.25%. As of December 31, 2019, the maturity was July 2023 with an interest rate of 7.50%.
Schedule of Derivative Instruments
As of March 31, 2020 and December 31, 2019, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
As of March 31, 2020As of December 31, 2019
(dollars in thousands)
Currency forwards$3,621  $3,302  
Equity swaps10,271  927  
Options3,400  1,604  
$17,292  $5,833  
Payable for derivative contracts
As of March 31, 2020 and December 31, 2019, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
As of March 31, 2020As of December 31, 2019
(dollars in thousands)
Currency forwards$186  $88  
Equity swaps17,093  3,931  
Options787  750  
$18,066  $4,769  
Schedule of Other Investments, Portfolio Funds
Investments in Portfolio Funds, at fair value
As of March 31, 2020 and December 31, 2019, investments in Portfolio Funds, at fair value, included the following:
As of March 31, 2020As of December 31, 2019
(dollars in thousands)
Investments of Enterprise LP$88,675  $99,153  
Investments of Merger Fund61,014  76,616  
$149,689  $175,769  
Merger Master  
Investment Holdings [Line Items]  
Marketable Securities
Merger Master
 As of March 31, 2020As of December 31, 2019
 (dollars in thousands)
Securities owned by Merger Master, at fair value
Common stock$175,892  $76,531  
Warrants and rights1,365  748  
Corporate bonds2,069  2,074  
$179,326  $79,353  
Securities sold, not yet purchased, by Merger Master, at fair value
Common stock$30,184  $29,623  
Exchange traded funds6,898  38,527  
$37,082  $68,150  
Schedule of Derivative Instruments
Receivable on derivative contracts, at fair value, owned by Merger Master
 As of March 31, 2020As of December 31, 2019
Description(dollars in thousands)
Options$2,945  $2,047  
Equity swaps1,890  406  
$4,835  $2,453  
Payable for derivative contracts, at fair value, owned by Merger Master
As of March 31, 2020As of December 31, 2019
Description(dollars in thousands)
Options$1,126  $1,158  
Equity swaps1,689  268  
$2,815  $1,426