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Investments of Operating Entities and Consolidated Funds - (Tables)
 9 Months Ended
Sep. 30, 2020
Investment Holdings [Line Items]  
Marketable Securities
As of September 30, 2020 and December 31, 2019, securities owned, at fair value consisted of the following:
As of September 30, 2020As of December 31, 2019
 (dollars in thousands)
Common stock$920,849 $1,546,484 
Preferred stock63,605 12,656 
Warrants and rights20,505 22,109 
Government bonds20,324 15,916 
Corporate bonds36,701 25,500 
Convertible bonds5,081 2,500 
Term loan (*)12,111 1,067 
Trade claims (*)9,390 7,320 
$1,088,566 $1,633,552 
(*)The Company has elected the fair value option for securities owned, at fair value with a fair value of $9.0 million and $8.4 million, respectively, at September 30, 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 September 30, 2020As of December 31, 2019
 Number of contracts / Notional ValueFair valueNumber of contracts / Notional ValueFair value
 (dollars in thousands)
Currency forwards$82,100 $870 $— $— 
Swaps$244,090 4,644 $383,752 2,911 
Options other (a)256,841 52,680 550,188 60,066 
$58,194 $62,977 
(a) Includes the volume of contracts for index, equity, commodity future and cash conversion options.
Payable for derivative contracts
As of September 30, 2020As of December 31, 2019
 Number of contracts / Notional ValueFair valueNumber of contracts / Notional ValueFair value
 (dollars in thousands)
Futures$9,895 $123 $10,224 $217 
Currency forwards$103,500 717 $77,790 851 
Swaps$376,331 7,514 $607,717 23,169 
Options other (a)252,576 53,700 306,306 36,524 
$62,054 $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 September 30, 2020 and December 31, 2019. This table does not include the impact of over-collateralization.
Gross amounts offset on the Condensed Consolidated Statements of Financial Condition (a)Net amounts included on the Condensed Consolidated Statements of Financial ConditionGross amounts not offset in the Condensed Consolidated Statements of Financial Condition
Gross amounts recognizedFinancial instrumentsCash Collateral pledgedNet amounts
(dollars in thousands)
As of September 30, 2020
Receivable on derivative contracts, at fair value$80,780 $22,586 $58,194 $3,631 $60 $54,503 
Payable for derivative contracts, at fair value67,295 5,241 62,054 3,631 2,777 55,646 
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.
Schedule of Other Investments
As of September 30, 2020 and December 31, 2019, other investments included the following:
As of September 30, 2020As of December 31, 2019
 (dollars in thousands)
Portfolio funds, at fair value (1)$123,787 $114,504 
Carried interest (2)47,343 30,360 
Equity method investments (3)33,480 40,858 
$204,610 $185,722 
Schedule of Other Investments, Portfolio Funds
The Portfolio Funds, at fair value as of September 30, 2020 and December 31, 2019, included the following:
As of September 30, 2020As of December 31, 2019
(dollars in thousands)
Starboard Value and Opportunity Fund (c)(*)$41,354 $37,895 
Formation8 Partners Fund I, L.P. (f)31,916 33,613 
Cowen Healthcare Investments II LP (i) (*)20,691 14,652 
Lagunita Biosciences, LLC (d)4,124 4,802 
Eclipse Ventures Fund I, L.P. (b)4,464 3,960 
HealthCare Royalty Partners II LP (a)(*)1,627 1,781 
RCG Longview Debt Fund V, L.P. (g)(*)1,232 1,732 
HealthCare Royalty Partners LP (a)(*)1,157 1,326 
Starboard Leaders Fund LP (e)(*)1,656 1,560 
Eclipse SPV I, LP (j)(*)1,680 1,447 
Ramius Merger Fund LLC (m)(*)1,952 — 
TriArtisan ES Partners LLC (k)(*)1,342 1,082 
Cowen Healthcare Investments III LP (i)(*)4,346 1,398 
TriArtisan PFC Partners LLC (l)(*)628 909 
RCG Longview Equity Fund, LP (g) (*)445 835 
Difesa Partners, LP (h) (*)681 508 
BDC Fund I Coinvest 1, L.P. (n) (*)1,250 — 
Other private investment (o)(*)315 4,448 
Other affiliated funds (p)(*)2,927 2,556 
$123,787 $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 17.
(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)Ramius Merger Fund LLC permits monthly withdrawals on 45 days prior notice.
(n)BDC Fund I Coinvest 1, L.P. is a private equity fund focused on investing in growth companies in industries disrupted by digitization. Distributions will be made when the underlying investments are liquidated.
(o)Other private investment represents the Company's closed end investment in a Portfolio Fund that invests in a wireless broadband communication provider in Italy.
(p)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 September 30, 2020 and December 31, 2019, included the following:
As of September 30, 2020As of December 31, 2019
(dollars in thousands)
Cowen Healthcare Investments II LP$35,829 $23,759 
Cowen Healthcare Investments III LP5,357 — 
TriArtisan TGIF Partners LLC2,881 — 
TriArtisan ES Partners LLC1,354 — 
TriArtisan PFC Partners LLC1,116 — 
Ramius Multi-Strategy Fund LP612 — 
Ramius Merger Fund LLC 13 — 
Other private investment (a)— 4,737 
RCG IO Renergys Sarl181 1,251 
Ramius Multi-Strategy Fund LP — 613 
$47,343 $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.
Schedule Equity Method Investments
The following table summarizes equity method investments held by the Company:
As of September 30, 2020As of December 31, 2019
(dollars in thousands)
Starboard Value LP$25,392 $24,292 
Surf House Ocean Views Holdings, LLC— 7,804 
HealthCare Royalty GP III, LLC 2,198 2,230 
RCG Longview Debt Fund V Partners, LLC1,721 2,889 
RCG Longview Management, LLC253 583 
HealthCare Royalty GP, LLC 675 108 
HealthCare Royalty GP II, LLC 276 302 
RCG Longview Debt Fund IV Management, LLC331 331 
RCG Longview Equity Management, LLC105 105 
HCR Stafford Fund GP, LLC850 880 
Liberty Harbor North292 292 
Other1,387 1,042 
$33,480 $40,858 
Schedule of Securities Sold, Not yet Purchased As of September 30, 2020 and December 31, 2019, securities sold, not yet purchased, at fair value consisted of the following:
 As of September 30, 2020As of December 31, 2019
 (dollars in thousands)
Common stock$404,409 $425,448 
Corporate bonds15,324 5,933 
Government bonds1,500 1,950 
Preferred stock10,767 3,686 
Warrants and rights8,930 14,819 
$440,930 $451,836 
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 September 30, 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 September 30, 2020
Securities borrowed$1,272,428 $— $1,272,428 $— $1,213,253 $— $59,175 
Securities loaned1,326,917 — 1,326,917 — 1,278,129 — 48,788 
Securities sold under agreements to repurchase6,218 — 6,218 — 7,587 — (1,369)
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 September 30, 2020 and December 31, 2019:
Open and OvernightUp to 30 days31 - 90 daysGreater than 90 daysTotal
(dollars in thousands)
As of September 30, 2020
Securities loaned
    Common stock$933,956 $— $— $— $933,956 
    Corporate bonds392,961 — — — 392,961 
Securities sold under agreements to repurchase— — 6,218 — 6,218 
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 September 30, 2020LinkemEquity, loans and warrantsItalyWireless Broadband9.01 %$82,074 
As of December 31, 2019LinkemEquity, loans and warrantsItalyWireless Broadband9.53 %$77,142 
Significant subsidiary - equity method [Member]  
Investment Holdings [Line Items]  
Schedule Equity Method Investments For the periods ended September 30, 2020 and December 31, 2019 and for the nine months periods ended September 30, 2020 and September 30, 2019, certain investments subject to Regulation S-X Rule 10-01(b)(1) of the SEC guidance held by the Company 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 September 30, 2020 and December 31, 2019 and for the three and nine months ended September 30, 2020 and 2019, and such information is as follows:
Other equity method investmentsAs of September 30, 2020As of December 31, 2019
(dollars in thousands)
Assets$59,379 $95,825 
Liabilities— 82,482 
Equity$59,379 $13,343 

Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(dollars in thousands)
Revenues
$274 $4,564 $54,717 $83,287 
Expenses— — — — 
Net realized and unrealized gains (losses)77 55 412 717 
Net income$351 $4,619 $55,129 $84,004 
Consolidated Funds  
Investment Holdings [Line Items]  
Marketable Securities
As of September 30, 2020 and December 31, 2019, securities owned, at fair value, held by the Consolidated Funds consisted of the following:
As of September 30, 2020As of December 31, 2019
 (dollars in thousands)
     Preferred stock$— $4,393 
     Common stock106,549 200,306 
     Government bonds— 161,607 
     Corporate bonds — 3,405 
     Convertible bonds75,538 — 
     Warrants and rights5,904 5,567 
$187,991 $375,278 
Schedule of Derivative Instruments
As of September 30, 2020 and December 31, 2019, receivable on derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
As of September 30, 2020As of December 31, 2019
(dollars in thousands)
Currency forwards$— $3,302 
Equity swaps— 927 
Options— 1,604 
$— $5,833 
Payable for derivative contracts
As of September 30, 2020 and December 31, 2019, payable for derivative contracts, at fair value, held by the Consolidated Funds are comprised of:
As of September 30, 2020As of December 31, 2019
(dollars in thousands)
Currency forwards$— $88 
Equity swaps— 3,931 
Options— 750 
$— $4,769 
Schedule of Other Investments, Portfolio Funds
Investments in Portfolio Funds, at fair value
As of September 30, 2020 and December 31, 2019, investments in Portfolio Funds, at fair value, included the following:
As of September 30, 2020As of December 31, 2019
As of December 31,
20202019
(dollars in thousands)
Investments of Enterprise LP$98,016 $99,153 
Investments of Merger Fund— 76,616 
Investment of Prodigy HoldCo251 — 
$98,267 $175,769 
Merger Master  
Investment Holdings [Line Items]  
Marketable Securities
Merger Master
 As of December 31, 2019
Securities owned by Merger Master, at fair value
(dollars in thousands)
Common stock$76,531 
Warrants and rights748 
Corporate bonds2,074 
$79,353 
Securities sold, not yet purchased, by Merger Master, at fair value
Common stock$29,623 
Exchange traded funds38,527 
$68,150 
Schedule of Derivative Instruments
Receivable on derivative contracts, at fair value, owned by Merger Master
 As of December 31, 2019
Description(dollars in thousands)
Options$2,047 
Equity swaps406 
$2,453 
Payable for derivative contracts, at fair value, owned by Merger Master
As of December 31, 2019
Description(dollars in thousands)
Options$1,158 
Equity swaps268 
$1,426