| Schedule of net investment income |
Net investment income for the three and six months ended June 30, 2019 and 2018 consisted of the following: | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | June 30,
2019 | | June 30,
2018 | | June 30,
2019 | | June 30,
2018 | Net investment income by type | | | | | | | | Net realized gains on investments and investment derivatives | $ | 44 |
| | $ | 64,731 |
| | $ | 44 |
| | $ | 130,500 |
| Net change in unrealized gains (losses) on investments and investment derivatives | 1,026 |
| | (32,532 | ) | | 2,728 |
| | (95,520 | ) | Net gains (losses) on foreign currencies | (1,192 | ) | | (1,830 | ) | | 2,573 |
| | (2,617 | ) | Dividend and interest income | 3,149 |
| | 24,493 |
| | 5,834 |
| | 37,717 |
| Dividends paid on securities sold, not yet purchased | — |
| | (2,329 | ) | | — |
| | (4,221 | ) | Other expenses | (253 | ) | | (6,865 | ) | | (443 | ) | | (12,352 | ) | Management and performance fees to related parties | — |
| | (14,493 | ) | | — |
| | (24,540 | ) | Net investment income from investment in related party investment fund (1) | 66,357 |
| | — |
| | 213,348 |
| | — |
| Net investment income | $ | 69,131 |
| | $ | 31,175 |
| | $ | 224,084 |
| | $ | 28,967 |
|
| | (1) | Effective August 31, 2018, Third Point Re, Third Point Re BDA and Third Point Re USA entered into the 2018 LPA to invest in TP Fund. As a result, the management and performance fees are presented within net investment income from investment in related party investment fund from the effective date of the transition. See Note 7 for additional information regarding management and performance fees. |
The following table provides an additional breakdown of our net investment income by asset and liability type for the three and six months ended June 30, 2019 and 2018: | | | | | | | | | | | | | | | | | | Three months ended | | Six months ended | | June 30, 2019 | | June 30, 2018 | | June 30, 2019 | | June 30, 2018 | Net investment income (loss) by asset type | | | | | | Equity securities | $ | — |
| | $ | 58,881 |
| | $ | — |
| | $ | 40,556 |
| Private common equity securities | — |
| | (11 | ) | | — |
| | (453 | ) | Private preferred equity securities | — |
| | 166 |
| | — |
| | (1,874 | ) | Total equities | — |
| | 59,036 |
| | — |
| | 38,229 |
| Asset-backed securities | — |
| | 7,033 |
| | — |
| | 19,482 |
| Bank debt | — |
| | 800 |
| | — |
| | 3,321 |
| Corporate bonds | — |
| | (737 | ) | | — |
| | (3,413 | ) | Municipal bonds | — |
| | 2,470 |
| | — |
| | 6,248 |
| U.S. Treasury securities | 3,224 |
| | 478 |
| | 5,022 |
| | (159 | ) | Sovereign debt | (934 | ) | | (8,533 | ) | | 32 |
| | (4,402 | ) | Other debt securities | — |
| | 31 |
| | — |
| | 469 |
| Total debt securities | 2,290 |
| | 1,542 |
| | 5,054 |
| | 21,546 |
| Options | — |
| | (5,562 | ) | | — |
| | (6,619 | ) | Rights and warrants | — |
| | 63 |
| | — |
| | 47 |
| Real estate | — |
| | 414 |
| | — |
| | 501 |
| Trade claims | — |
| | (284 | ) | | — |
| | (287 | ) | Total other investments | — |
| | (5,369 | ) | | — |
| | (6,358 | ) | Net investment income (loss) in funds valued at NAV, excluding TP Fund | — |
| | 282 |
| | 3 |
| | (625 | ) | Total net investment income from invested assets | 2,290 |
| | 55,491 |
| | 5,057 |
| | 52,792 |
| Net investment income (loss) by liability type | | | | | | | | Equity securities | — |
| | (23,844 | ) | | — |
| | (10,926 | ) | Corporate bonds | — |
| | (1,934 | ) | | — |
| | (1,969 | ) | Options | — |
| | 9,174 |
| | — |
| | 12,907 |
| Total net investment income (loss) from securities sold, not yet purchased | — |
| | (16,604 | ) | | — |
| | 12 |
| Other investment income (losses) and other expenses not presented above | | | | | | | | Other investment expenses | (254 | ) | | (673 | ) | | (444 | ) | | (1,026 | ) | Net investment income on derivative contracts | — |
| | 8,680 |
| | — |
| | 6,059 |
| Net investment income (loss) on cash, including foreign exchange gain (loss) | 738 |
| | (5,485 | ) | | 6,123 |
| | (9,345 | ) | Net investment losses on securities purchased under an agreement to sell and securities sold under an agreement to repurchase | — |
| | (32 | ) | | — |
| | (241 | ) | Withholding taxes reclassified to income tax expense | — |
| | 4,291 |
| | — |
| | 5,256 |
| Total other investment income and other expenses | 484 |
| | 6,781 |
| | 5,679 |
| | 703 |
| Management and performance fees to related parties | — |
| | (14,493 | ) | | — |
| | (24,540 | ) | Net investment income from investment in related party investment fund (1) | 66,357 |
| | — |
| | 213,348 |
| | — |
| Net investment income | $ | 69,131 |
| | $ | 31,175 |
| | $ | 224,084 |
| | $ | 28,967 |
|
(1) Effective August 31, 2018, Third Point Re, Third Point Re BDA and Third Point Re USA entered into the 2018 LPA to invest in TP Fund. As a result, the management and performance fees are presented within net investment income from investment in related party investment fund from the effective date of the transition. See Note 7 for additional information regarding management and performance fees.
|
| Equity Method Investment, Summarized Financial Information, Related Party Investment Fund |
As a result of the Company’s holding in TP Fund and its contribution to the Company’s overall financial results, the Company includes the following summarized income statement of the TP Fund for the three and six months ended June 30, 2019 and summarized balance sheet as of June 30, 2019 and December 31, 2018. This summarized income statement of TP Fund reflects the main components of total investment income and expenses of TP Fund. This summarized income statement is not a breakdown of the Company’s proportional investment income in TP Fund as presented in the Company’s condensed consolidated statement of income. | | | | | | | | | | Three months ended | | Six months ended | TP Fund summarized income statement (1) | June 30, 2019 | | June 30, 2019 | Investment income | | | | Net realized gain (loss) from securities, derivative contracts and foreign currency translations | $ | 19,663 |
| | $ | (3,438 | ) | Net change in unrealized gain on securities, derivative contracts and foreign currency translations | 59,728 |
| | 249,766 |
| Net loss from currencies | (2,110 | ) | | (2,592 | ) | Dividend and interest income | 17,756 |
| | 30,080 |
| Other income | 2,306 |
| | 4,414 |
| Total investment income | 97,343 |
| | 278,230 |
| Expenses | | | | Management fees | 5,143 |
| | 9,986 |
| Interest | 5,201 |
| | 8,824 |
| Dividends on securities sold, not yet purchased | 2,389 |
| | 4,744 |
| Administrative and professional fees | 613 |
| | 1,015 |
| Other expenses | 1,607 |
| | 3,204 |
| Total expenses | 14,953 |
| | 27,773 |
| Net income | $ | 82,390 |
| | $ | 250,457 |
|
(1) TP Fund commenced operations on September 3, 2018, as result, there are no comparative results for the prior year periods. The following table is a summarized balance sheet of TP Fund as of June 30, 2019 and December 31, 2018 and reflects the underlying assets and liabilities of TP Fund. This summarized balance sheet is not a breakdown of the Company’s proportional interests in the underlying assets and liabilities of TP Fund. | | | | | | | | | TP Fund summarized balance sheet | June 30, 2019 | | December 31, 2018 | Assets | | | | Total investments in securities | $ | 1,826,645 |
| | $ | 1,561,636 |
| Cash and cash equivalents | 906 |
| | 6 |
| Due from brokers | 478,592 |
| | 375,469 |
| Derivative assets, at fair value | 26,725 |
| | 20,533 |
| Interest and dividends receivable | 6,258 |
| | 3,693 |
| Participation agreement with related party | — |
| | 2,296 |
| Other assets | 107 |
| | 422 |
| Total assets | $ | 2,339,233 |
| | $ | 1,964,055 |
| Liabilities | | | | Accounts payable and accrued expenses | $ | 2,369 |
| | $ | 1,754 |
| Securities sold, not yet purchased, at fair value | 406,124 |
| | 355,233 |
| Securities sold under agreement to repurchase | 1,290 |
| | — |
| Due to brokers | 453,935 |
| | 107,116 |
| Derivative liabilities, at fair value | 24,858 |
| | 27,483 |
| Redemptions payable to Third Point Re | 400,000 |
| | — |
| Interest and dividends payable | 2,327 |
| | 1,881 |
| Management fee payable | 467 |
| | 182 |
| Total liabilities | 1,291,370 |
| | 493,649 |
| Total partners' capital | $ | 1,047,863 |
| | $ | 1,470,406 |
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