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EX-32.2 - EXHIBIT 32.2, DATED MAY 13, 2016 - Associated Capital Group, Inc.ex32_2033116.htm
EX-32.1 - EXHIBIT 32.1, DATED MAY 13, 2016 - Associated Capital Group, Inc.ex32_1033116.htm
EX-31.2 - EXHIBIT 31.2, DATED MAY 13, 2016 - Associated Capital Group, Inc.ex31_2033116.htm
EX-31.1 - EXHIBIT 31.1, DATED MAY 13, 2016 - Associated Capital Group, Inc.ex31_1033116.htm
SECURITIES & EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q

(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2016
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___ to ___

Commission File No. 001-37387

ASSOCIATED CAPITAL GROUP, INC.
(Exact name of Registrant as specified in its charter)

Delaware
 
47-3965991
(State of other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
One Corporate Center, Rye, NY
 
10580-1422
(Address of principle executive offices)
 
(Zip Code)

(203) 629-9595
Registrant’s telephone number, including area code
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes   No
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes   No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer", "accelerated filer", and "smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer
Accelerated filer
 
 
Non-accelerated filer
Smaller reporting company
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes    No
 
Indicate the number of shares outstanding of each of the Registrant’s classes of Common Stock, as of the latest practical date.
Class
 
Outstanding at April 30, 2016
Class A Common Stock, .001 par value
(Including 551,900 restricted stock awards)
6,189,038
Class B Common Stock, .001 par value
 
19,196,792
 


INDEX
 
ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
 
 
PART I.
FINANCIAL INFORMATION
 
 
Item 1.
Unaudited Condensed Consolidated Financial Statements
 
 
 
Condensed Consolidated Statements of Financial Condition:
 
-    March 31, 2016
 
-    December 31, 2015
 
-    March 31, 2015
 
 
 
Condensed Consolidated Statements of Income:
 
-    Three months ended March 31, 2016 and 2015
 
 
 
Condensed Consolidated Statements of Comprehensive Income:
 
-    Three months ended March 31, 2016 and 2015
 
 
 
Condensed Consolidated Statements of Equity:
 
-    Three months ended March 31, 2016 and 2015
 
 
 
Condensed Consolidated Statements of Cash Flows:
 
-    Three months ended March 31, 2016 and 2015
 
 
 
Notes to Unaudited Condensed Consolidated Financial Statements
 
 
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
 
 
Item 3.
Quantitative and Qualitative Disclosures About Market Risk (Included in Item 2)
 
 
Item 4.
Controls and Procedures
 
 
PART II.
OTHER INFORMATION
 
 
Item 1.
Legal Proceedings
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 6.
Exhibits
 
 
SIGNATURES

2

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
UNAUDITED
(Dollars in thousands, except per share data)
 
   
March 31,
   
December 31,
   
March 31,
 
 
 
2016
   
2015
   
2015
 
ASSETS
                 
Cash and cash equivalents
 
$
203,239
   
$
205,750
   
$
320,373
 
Investments in securities
   
184,819
     
197,264
     
120,834
 
Investment in GBL stock
   
162,807
     
136,360
     
-
 
Investments in registered investment companies
   
115,916
     
118,676
     
120,831
 
Investments in partnerships
   
113,147
     
105,051
     
106,940
 
Receivable from brokers
   
23,278
     
56,510
     
19,526
 
Investment advisory fees receivable
   
1,463
     
4,896
     
1,461
 
Receivable from affiliates
   
3,507
     
7,457
     
299
 
Goodwill
   
3,254
     
3,254
     
3,254
 
Other assets
   
1,270
     
1,530
     
2,523
 
Total assets
 
$
812,700
   
$
836,748
   
$
696,041
 
 
                       
LIABILITIES AND EQUITY
                       
Payable to brokers
 
$
12,251
   
$
50,648
   
$
10,127
 
Income taxes payable and deferred tax liabilities
   
13,357
     
5,669
     
17,367
 
Compensation payable
   
4,893
     
10,926
     
4,571
 
Securities sold, not yet purchased
   
8,014
     
9,623
     
8,569
 
Mandatorily redeemable noncontrolling interests
   
1,421
     
1,129
     
1,298
 
Payable to affiliates
   
673
     
-
     
22,760
 
Accrued expenses and other liabilities
   
4,072
     
1,466
     
1,619
 
Total liabilities
   
44,681
     
79,461
     
66,311
 
 
                       
Redeemable noncontrolling interests
   
3,752
     
5,738
     
5,519
 
 
                       
Equity:
                       
Preferred stock, $0.001 par value, 10,000,000.000 shares authorized; none issued and outstanding
   
-
     
-
     
-
 
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized; 6,244,452, 6,247,452 and 0 shares
                       
   issued, respectively; 6,154,674, 6,242,952 and 0 shares outstanding, respectively
   
6
     
6
     
-
 
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized; 19,196,792, 19,196,792 and 0 shares
                       
  issued and outstanding, respectively
   
19
     
19
     
-
 
Additional paid-in capital
   
999,644
     
999,000
     
-
 
Parent Company Equity - pre Spin-off
   
-
     
-
     
614,895
 
Retained earnings
   
1,131
     
2,072
     
-
 
GBL 4% PIK Note
   
(250,000
)
   
(250,000
)
   
-
 
Accumulated other comprehensive income
   
12,933
     
(1,857
)
   
9,316
 
Treasury stock, at cost (89,778, 1,500 and 0 shares, respectively)
   
(2,464
)
   
(44
)
   
-
 
Total Associated Capital Group, Inc. stockholders' equity
   
761,269
     
749,196
     
624,211
 
Noncontrolling interest 
   
2,998
     
2,353
     
-
 
Total equity
   
764,267
     
751,549
     
624,211
 
Total liabilities and equity
 
$
812,700
   
$
836,748
   
$
696,041
 
 
See accompanying notes.

3

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
(Dollars in thousands, except per share data)
 
   
Three Months Ended
 
 
 
March 31,
 
 
 
2016
   
2015
 
Revenues
           
Investment advisory and incentive fees
 
$
2,068
   
$
1,986
 
Institutional research services
   
2,055
     
2,066
 
Other
   
394
     
515
 
Total revenues
   
4,517
     
4,567
 
Expenses
               
Compensation
   
6,312
     
5,879
 
Management fee
   
274
     
387
 
Stock based compensation
   
644
     
638
 
Other operating expenses
   
1,802
     
1,543
 
Total expenses
   
9,032
     
8,447
 
 
               
Operating loss
   
(4,515
)
   
(3,880
)
Other income (expense)
               
Net gain from investments
   
3,709
     
6,946
 
Interest and dividend income
   
3,434
     
745
 
Interest expense
   
(420
)
   
(334
)
Total other income/(expense), net
   
6,723
     
7,357
 
Income before income taxes
   
2,208
     
3,477
 
Income tax provision
   
661
     
1,101
 
Net income
   
1,547
     
2,376
 
Net loss attributable to noncontrolling interests
   
(46
)
   
(9
)
Net income attributable to Associated Capital Group, Inc.'s shareholders
 
$
1,593
   
$
2,385
 
                 
Net income attributable to Associated Capital Group, Inc.'s shareholders
               
  per share:
               
Basic
 
0.06
   
0.09
 
                 
Diluted
 
0.06
   
0.09
 
                 
Weighted average shares outstanding:
               
Basic
   
24,863
     
25,132
 
                 
Diluted
   
25,177
     
25,414
 
                 
Dividends declared
 
0.10
   
-
 
 
See accompanying notes.

4

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
UNAUDITED
(Dollars in thousands, except per share data)
 
   
Three Months Ended
 
 
 
March 31,
 
 
 
2016
   
2015
 
 
           
Net income
 
$
1,547
   
$
2,376
 
Other comprehensive income, net of tax:
               
Net unrealized gains on securities available for sale (a)
   
15,514
     
138
 
Other comprehensive income
   
15,514
     
138
 
 
               
Comprehensive income
   
17,061
     
2,514
 
Less: Comprehensive income/(loss) attributable to noncontrolling interests
   
678
     
(9
)
 
               
Comprehensive income attributable to Associated Capital Group, Inc.
 
$
16,383
   
$
2,523
 
 
(a) Net of income tax expense of $8,726, and $81, respectively.
 
5

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
UNAUDITED
(In thousands)

For the Three Months Ended March 31, 2016

         
Associated Capital Group, Inc. shareholders
       
                     
Additional
         
Accumulated
               
Redeemable
 
   
Noncontrolling
   
Common
   
Retained
   
Paid-in
   
GBL 4%
   
Comprehensive
   
Treasury
         
Noncontrolling
 
   
Interests
   
Stock
   
Earnings
   
Capital
   
PIK Note
   
Income
   
Stock
   
Total
   
Interests
 
Balance at December 31, 2015
 
$
2,353
   
$
25
   
$
2,072
   
$
999,000
   
$
(250,000
)
 
$
(1,857
)
 
$
(44
)
 
$
751,549
   
$
5,738
 
Redemptions of
                                                                       
noncontrolling interests
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(208
)
Deconsolidation of an offshore
                                                                       
fund
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(1,811
)
Net income (loss)
   
(79
)
   
-
     
1,593
     
-
     
-
     
-
     
-
     
1,514
     
33
 
Net unrealized losses on
                                                                       
securities available for sale,
                                                                       
net of income tax benefit ($8,726)
   
724
     
-
     
-
     
-
     
-
     
14,790
     
-
     
15,514
     
-
 
Dividends declared ($0.10 per                                                                         
 share)
   
-
     
-
     
(2,534
)
   
-
     
-
     
-
     
-
     
(2,534
)
   
-
 
Stock based compensation
                                                                       
expense
   
-
     
-
     
-
     
644
     
-
     
-
     
-
     
644
     
-
 
Purchase of treasury stock
   
-
     
-
     
-
     
-
     
-
     
-
     
(2,420
)
   
(2,420
)
   
-
 
Balance at March 31, 2016
 
$
2,998
   
$
25
   
$
1,131
   
$
999,644
   
$
(250,000
)
 
$
12,933
   
$
(2,464
)
 
$
764,267
   
$
3,752
 
 
See accompanying notes.

6

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY
UNAUDITED
(In thousands)

For the Three Months Ended March 31, 2015

 
 
Associated Capital Group, Inc stockholders
       
   
Parent Company
   
Accumulated
         
Redeemable
 
   
Equity
   
Comprehensive
         
Noncontrolling
 
 
 
pre Spin-off
   
Income
   
Total
   
Interests
 
Balance at December 31, 2014
 
$
573,749
   
$
9,178
   
$
582,927
   
$
68,334
 
Redemptions of redeemable noncontrolling interests
   
-
     
-
     
-
     
(441
)
Contributions from redeemable noncontrolling interests
   
-
     
-
     
-
     
891
 
Deconsolidation of an offshore fund
   
-
     
-
     
-
     
(63,256
)
Net loss
   
2,385
     
-
     
2,385
     
(9
)
Net unrealized losses on securities available for sale,
                               
  net of income tax benefit ($89)
   
-
     
152
     
152
     
-
 
Amounts reclassified from accumulated other
                               
  comprehensive income,net of income tax $(8)
   
-
     
(14
)
   
(14
)
   
-
 
Stock based compensation expense
   
638
     
-
     
638
     
-
 
Net transfers from GBL
   
38,123
     
-
     
38,123
     
-
 
Balance at March 31, 2015
 
614,895
   
$
9,316
   
$
624,211
   
$
5,519
 

See accompanying notes.

7

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
(In thousands)
 
   
Three Months Ended
 
 
 
March 31,
 
 
 
2016
   
2015
 
Operating activities
           
Net loss
 
$
1,547
   
$
2,376
 
Adjustments to reconcile net income to net cash provided by operating activities:
               
Equity in net gains from partnerships
   
(2,181
)
   
(2,088
)
Depreciation and amortization
   
3
     
3
 
Stock based compensation expense
   
644
     
638
 
Net gains on sales of available for sale securities
   
-
     
(45
)
(Increase) decrease in assets:
               
Investments in trading securities
   
9,801
     
4,603
 
Investments in partnerships:
               
Contributions to partnerships
   
(17,617
)
   
(9,870
)
Distributions from partnerships
   
11,699
     
13,525
 
Receivable from affiliates
   
3,951
     
-
 
Receivable from brokers
   
32,535
     
6,895
 
Investment advisory fees receivable
   
3,414
     
2,473
 
Other assets
   
628
     
16,680
 
Increase (decrease) in liabilities:
               
Payable to brokers
   
(38,376
)
   
4,215
 
Income taxes payable and deferred tax liabilities
   
(1,038
)
   
922
 
Intercompany payable
   
673
     
2,027
 
Compensation payable
   
(6,032
)
   
(4,609
)
Mandatorily redeemable noncontrolling interests
   
292
     
(4
)
Accrued expenses and other liabilities
   
132
     
487
 
Total adjustments
   
(1,472
)
   
35,852
 
Net cash provided by operating activities
 
$
75
   
$
38,228
 
 
8

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED (continued)
(In thousands)
 
   
Three Months Ended
 
 
 
March 31,
 
 
 
2016
   
2015
 
Investing activities
           
Purchases of available for sale securities
 
$
(219
)
 
$
(41,397
)
Proceeds from sales of available for sale securities
   
-
     
100
 
Return of capital on available for sale securities
   
263
     
217
 
Net cash provided by (used in) investing activities
   
44
     
(41,080
)
 
               
Financing activities
               
Redemptions of redeemable noncontrolling interests
   
(208
)
   
(441
)
Net transfer from Parent
   
-
     
38,123
 
Purchase of treasury stock
   
(2,420
)
   
-
 
Net cash provided by financing activities
   
(2,628
)
   
37,682
 
Net increase in cash and cash equivalents
   
(2,509
)
   
34,830
 
Cash and cash equivalents at beginning of period
   
205,750
     
285,530
 
Increase (decrease) in cash from consolidation
   
(2
)
   
13
 
Cash and cash equivalents at end of period
 
$
203,239
   
$
320,373
 
Supplemental disclosures of cash flow information:
               
Cash paid for interest
 
$
128
   
$
302
 
Cash paid for taxes
 
$
1,600
   
$
-
 

Non-cash activity:
-
On January 1, 2016, Associated Capital Group, Inc. was no longer deemed to have control over a certain offshore fund which resulted in the deconsolidation of that offshore fund and a decrease of approximately $1 of cash and cash equivalents, a decrease of approximately $104 of net assets and a decrease of approximately $105 of redeemable noncontrolling interests.
 
- On January 1, 2016, Associated Capital Group, Inc. adopted ASU 2015-02, which amends the consolidation requirements of ASC 810.  This resulted in the deconsolidation of a certain consolidated feeder fund and a certain limited partnership and a decrease of approximately $1 of cash and cash equivalents, a decrease of approximately $1,705 of net assets and a decrease of approximately $1,706 of redeemable noncontrolling interests.
-
On January 1, 2015, Associated Capital Group, Inc. was no longer deemed to have control over a certain offshore fund and a certain consolidated feeder fund which resulted in the deconsolidation of that offshore fund and consolidated feeder fund and an increase of approximately $13 of cash and cash equivalents, a decrease of approximately $63,280 of net assets and a decrease of approximately $63,267 of redeemable noncontrolling interest.
 
-  For the three months ended March 31, 2016 and March 31, 2015, the Company accrued dividends on restricted stock awards
   of $49 and $0, respectively.
 
See accompanying notes.
9

ASSOCIATED CAPITAL GROUP, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
March 31, 2016
(Unaudited)
 
A. Basis of Presentation and Significant Accounting Policies
 
Unless we have indicated otherwise, or the context otherwise requires, references in this report to “Associated Capital Group, Inc.,” “AC Group,” “the Company,” “AC,” “we,” “us” and “our” or similar terms are to Associated Capital Group, Inc., its predecessors and its subsidiaries.
 
The Spin-off and Related Transactions
 
We are a Delaware corporation organized to be the parent operating company for the spin-off of GAMCO Investors, Inc.’s (“GAMCO’s”) alternative investment management business, institutional research services operations and certain cash and other assets. 
 
On November 30, 2015, GAMCO distributed all the outstanding shares of each class of common stock of AC Group on a pro rata one-for-one basis to the holders of each class of GAMCO’s common stock.  Prior to the distribution, GAMCO contributed the 93.9% interest it held in Gabelli Securities, Inc. (“GSI”) and certain cash and other assets to AC Group. GSI is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended. GSI and its wholly owned subsidiary, Gabelli & Partners, LLC ("Gabelli & Partners"), collectively serve as general partners or investment managers to investment funds including limited partnerships and offshore companies (collectively, "Investment Partnerships"), and separate accounts. We primarily manage assets in equity event-driven value strategies, across a range of risk and event arbitrage portfolios. The business earns fees from its advisory assets, and income (loss) from trading and investment portfolio activities. The advisory fees include management and incentive fees. Management fees are largely based on a percentage of the portfolios' levels of assets under management. Incentive fees are based on the percentage of profits derived from the investment performance delivered to clients' invested assets.  At March 31, 2016, certain employees of GAMCO own 1.9% of GSI, and the remaining 4.2% of GSI is owned by individual investors unrelated to GAMCO and AC Group.
 
We operate our institutional research services operations through G.research, LLC ("G.research"), a wholly owned subsidiary of GSI. G.research is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). Through G.research, we provide institutional research services as well as act as an underwriter. G.research is regulated by the Financial Industry Regulatory Authority ("FINRA"). G.research's revenues are derived primarily from institutional research services.
 
In addition, the following transactions were also undertaken in connection with the spin-off:
 
GAMCO issued a promissory note (the “GAMCO Note”) to AC Group in the original principal amount of $250.0 million used to partially capitalize the Company in connection with the spin-off. The GAMCO Note bears interest at 4.0% per annum and has a maturity date of November 30, 2020 with respect to the original principal amount of the GAMCO Note. Interest on the GAMCO Note will accrue from the most recent date for which interest has been paid, or if no interest has been paid, from the effective date of the GAMCO Note; provided, however, that at the election of GAMCO, payment of interest on the GAMCO Note may, in lieu of being paid in cash, be paid, in whole or in part, in kind on the then-outstanding principal amount (a “PIK Amount”). GAMCO will repay the original principal amount of the GAMCO Note to AC Group, in cash, in five equal annual installments of $50 million on each interest payment date up to and including the maturity date and will repay all PIK Amounts added to the outstanding principal amount of the GAMCO Note, in cash, on the fifth anniversary of the date on which each such PIK Amount was added to the outstanding principal amount of the GAMCO Note.  In no event may any interest be paid in kind subsequent to November 30, 2019.  GAMCO may prepay the GAMCO Note prior to maturity without penalty.
 
In addition, AC Group, through its majority-owned GSI subsidiary, owns 4,393,055 shares of GAMCO Class A common stock.  The sale was made from GAMCO to GSI in advance of the spin-off.  GSI paid the purchase price by issuing a note to GAMCO in the principal amount of $150 million (the “GSI Note”).  In connection with the spin-off, AC Group received the GSI Note from GAMCO and GSI became a majority-owned subsidiary of AC Group.  The GSI Note is thus now an intercompany note within the AC Group.
10


Basis of Presentation
 
The unaudited interim condensed consolidated financial statements of AC Group included herein have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X.  Accordingly, they do not include all the information and footnotes required by U.S. GAAP in the United States for complete financial statements.  In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of the Company for the interim periods presented and are not necessarily indicative of a full year’s results.
 
The interim condensed consolidated financial statements include the accounts of AC Group and its subsidiaries.  Intercompany accounts and transactions are eliminated.
 
The Company's interim condensed combined consolidated statement of financial condition at March 31, 2015, and the Company's interim condensed combined consolidated statement of income for the three months ended March 31, 2015 were derived from the combined financial statements and accounting records of GAMCO and are presented as carve-out financial statements as the Company was not a standalone public company prior to the spin-off.  For the periods prior to the spin-off of the Company from GAMCO, the combined consolidated financial statements include allocations from GAMCO.  These allocations may not be reflective of the actual level of assets, liabilities, income or costs which would have been incurred had the Company operated as a separate legal entity apart from GAMCO.

The Company's condensed consolidated statements of financial condition at March 31, 2016 and December 31, 2015, and the Company's condensed consolidated statement of income for the three months ended March 31, 2016 are presented based on our actual results as a stand-alone public company subsequent to our spin-off.  References within these Notes to the condensed consolidated statement of financial condition as of March 31, 2016 and December 31, 2015 and the condensed combined consolidated statement of financial condition as of March 31, 2015 shall hereinafter be referred to as the condensed consolidated statements of financial condition.  References within these Notes to the condensed consolidated statement of income for the three months ended March 31, 2016 and the condensed combined consolidated statement of income for the three months ended March 31, 2015 shall hereinafter be referred to as the condensed consolidated statements of income.
 
Use of Estimates
 
The preparation of the condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported on the condensed consolidated financial statements and accompanying notes.  Actual results could differ from those estimates.
 
Recent Accounting Developments
 
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in the Accounting Standards Codification ("Codification") Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the Codification.  The core principle of the new ASU No. 2014-09 is for companies to recognize revenue from the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services.  The new standard provides a five-step approach to be applied to all contracts with customers and also requires expanded disclosures about revenue recognition.  The ASU is effective for annual reporting periods beginning after December 15, 2017, including interim periods and is to be retrospectively applied.  Early adoption is not permitted.  The Company is currently evaluating this guidance and the impact it will have on its condensed consolidated financial statements.

In May 2015, the FASB issued new guidance amending the current disclosure requirements for investments in certain entities that calculate net asset value (“NAV”) per share.  The guidance requires investments for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy.  Instead, those investment amounts shall be provided as a separate item to permit reconciliation of the fair value of investments included in the fair value hierarchy to the line items presented in the statement of financial condition.  This new guidance was effective for the Company's first quarter of 2016 and was applied retrospectively.
11


In January 2016, the FASB issued ASU 2016-01, which amends the guidance in U.S. GAAP on the classification and measurement of financial instruments. Although the ASU retains many current requirements, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. The ASU also amends certain disclosure requirements associated with the fair value of financial instruments. For public companies, the new standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2017. To adopt the amendments, entities will be required to make a cumulative-effect adjustment to beginning retained earnings as of the beginning of the fiscal year in which the guidance is effective. The Company is currently evaluating this guidance and the impact it will have on its condensed consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, which simplifies several aspects of the accounting for employee share-based payment transactions for both public and nonpublic entities, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. For public companies, the ASU is effective for annual reporting periods beginning after December 15, 2016, including interim periods within those annual reporting periods.  Early adoption is permitted. The Company is currently evaluating this guidance and the impact it will have on its consolidated financial statements.

B. Investment in Securities
 
Investments in securities (including GBL stock) at March 31, 2016, December 31, 2015 and March 31, 2015 consisted of the following:
 
 
 
March 31, 2016
   
December 31, 2015
   
March 31, 2015
 
 
 
Cost
   
Fair Value
   
Cost
   
Fair Value
   
Cost
   
Fair Value
 
 
 
(In thousands)
 
Trading securities:
                                   
Government obligations
 
$
99,841
   
$
99,964
   
$
99,897
   
$
99,940
   
$
9,998
   
$
9,998
 
Common stocks
   
66,906
     
79,571
     
78,974
     
92,194
     
84,646
     
105,190
 
Mutual funds
   
2,579
     
3,215
     
2,578
     
3,216
     
2,505
     
3,596
 
Other investments
   
648
     
918
     
570
     
771
     
549
     
762
 
Total trading securities
   
169,974
     
183,668
     
182,019
     
196,121
     
97,698
     
119,546
 
 
                                               
Available for sale securities:
                                               
Common stocks
   
150,000
     
162,807
     
150,000
     
136,360
     
-
     
-
 
Mutual funds
   
627
     
1,151
     
627
     
1,143
     
627
     
1,288
 
Total available for sale securities
   
150,627
     
163,958
     
150,627
     
137,503
     
627
     
1,288
 
 
                                               
Total investments in securities
 
$
320,601
   
$
347,626
   
$
332,646
   
$
333,624
   
$
98,325
   
$
120,834
 
 
Securities sold, not yet purchased at March 31, 2016, December 31, 2015 and March 31, 2015 consisted of the following:
 
 
March 31, 2016
   
December 31, 2015
   
March 31, 2015
 
 
Proceeds
   
Fair Value
   
Proceeds
   
Fair Value
   
Proceeds
   
Fair Value
 
Trading securities:
(In thousands)
 
Common stocks
 
$
7,951
   
$
7,947
   
$
10,095
   
$
9,537
   
$
8,485
   
$
8,530
 
Other investments
   
2
     
67
     
24
     
86
     
3
     
39
 
Total securities sold, not yet purchased
 
$
7,953
   
$
8,014
   
$
10,119
   
$
9,623
   
$
8,488
   
$
8,569
 
 

12

Investments in affiliated registered investment companies at March 31, 2016, December 31, 2015 and March 31, 2015 consisted of the following:
 
 
 
March 31, 2016
   
December 31, 2015
   
March 31, 2015
 
 
 
Cost
   
Fair Value
   
Cost
   
Fair Value
   
Cost
   
Fair Value
 
 
 
(In thousands)
 
Trading securities:
                                   
Mutual funds
 
$
40,097
   
$
43,798
   
$
40,097
   
$
43,133
   
$
37,097
   
$
39,871
 
Total trading securities
   
40,097
     
43,798
     
40,097
     
43,133
     
37,097
     
39,871
 
 
                                               
Available for sale securities:
                                               
Closed-end funds
   
60,865
     
69,052
     
62,070
     
72,591
     
63,538
     
77,663
 
Mutual funds
   
1,841
     
3,066
     
1,846
     
2,952
     
1,891
     
3,297
 
Total available for sale securities
   
62,706
     
72,118
     
63,916
     
75,543
     
65,429
     
80,960
 
 
                                               
Total investments in affiliated                                                
  registered investment companies
 
$
102,803
   
$
115,916
   
$
104,013
   
$
118,676
   
$
102,526
   
$
120,831
 
 
Management determines the appropriate classification of debt and equity securities at the time of purchase and reevaluates such designation as of the date of each consolidated statement of financial condition.  Investments in United States Treasury Bills and Notes with maturities of greater than three months at the time of purchase are classified as investments in securities, and those with maturities of three months or less at the time of purchase are classified as cash equivalents.  The portion of investments in securities held for resale in anticipation of short-term market movements are classified as trading securities.  Trading securities are stated at fair value, with any unrealized gains or losses reported in current period earnings.  Available for sale (“AFS”) investments are stated at fair value, with any unrealized gains or losses, net of taxes, reported as a component of equity except for losses deemed to be other than temporary (“OTT”) which are recorded as realized losses in the condensed consolidated statements of income.

The following table identifies all reclassifications out of accumulated other comprehensive income ("AOCI") into income for the three months ended March 31, 2016 and 2015 (in thousands):
 
Amount
 
Affected Line Items
 
Reason for
Reclassified
 
in the Statements
 
Reclassification
from AOCI
 
Of Income
 
from AOCI
Three months ended March 31,
 
 
 
  
2016
 
2015
 
 
 
  
 
$
-
   
$
22
 
Net gain from investments
 
Realized gain on sale of AFS securities
   
-
     
22
 
Income before income taxes
 
 
   
-
     
(8
)
Income tax provision
 
 
 
$
-
   
$
14
 
Net income
 
 

The Company recognizes all equity derivatives as either assets or liabilities measured at fair value and includes them in either investments in securities or securities sold, not yet purchased on the condensed consolidated statements of financial condition.  From time to time, the Company and/or the partnerships and offshore funds that the Company consolidates will enter into hedging transactions to manage their exposure to foreign currencies and equity prices related to their proprietary investments.  At March 31, 2016, December 31, 2015 and March 31, 2015, we held derivative contracts on 317,000 equity shares, 250,000 equity shares and 400,000 equity shares, respectively, that are included in investments in securities or securities sold, not yet purchased on the condensed consolidated statements of financial condition.   We had two foreign exchange contracts, two foreign exchange contracts and one foreign exchange contract outstanding at March 31, 2016, December 31, 2015 and March 31, 2015, respectively, that are included in receivable from brokers or payable to brokers on the condensed consolidated statements of financial condition.  Aside from one foreign exchange contract, these transactions are not designated as hedges for accounting purposes, and therefore changes in fair values of these derivatives are included in net gain from investments on the condensed consolidated statements of income.  The one foreign exchange contract that is designated as a hedge was for a short of British Pounds to hedge the long investment that we have in the London Stock Exchange listed Gabelli Value Plus+ Trust Ltd. closed-end fund which is denominated in British Pounds.  As the underlying investment that is being hedged is an available for sale security, the portion of the change in value of the closed-end fund that is currency related is recorded in net gain from investments on the condensed consolidated statements of income and not in accumulated comprehensive income.
13


The following tables identify the fair values and gains and losses of all derivatives held by the Company (in thousands):
 
 
Asset Derivatives
 
Liability Derivatives
 
   Statement of   Fair Value   Statement of    Fair Value  
   Financial Condition   March 31,   December 31,    March 31,    Financial Condition    March 31,    December 31,    March 31,   
 
Location  
2016
 
2015
 
2015
 
Location
 
2016
 
2015
 
2015
 
Derivatives designated as hedging                           
 instruments under FASB ASC 815-20
         
 
             
Foreign exchange contracts
Receivable from brokers
 
$
-
 
$
-
 
$
-
 
Payable to brokers
 
$
2,875
 
$
37,584
 
$
-
 
Sub total
 
 
$
-
 
$
-
 
$
-
 
 
 
$
2,875
 
$
37,584
 
$
-
 
Derivatives Not Designated As Hedging Instruments Under Fasb Asc 815-20
             
 
                   
  Investments in                       Securities sold,                      
Equity contracts
securities
 
$
185
 
$
236
 
$
128
 
not yet purchased
 
$
67
 
$
86
 
$
39
 
Foreign exchange contracts
Receivable from brokers
   
-
   
-
   
-
 
Payable to brokers
   
5,223
   
5,017
   
4,991
 
Sub total
 
 
$
185
 
$
236
 
$
128
 
 
 
$
5,290
 
$
5,103
 
$
5,030
 
Total derivatives
 
 
$
185
 
$
236
 
$
128
 
 
 
$
8,165
 
$
42,687
 
$
5,030
 

Type of Derivative
 
Income Statement Location
 
Three months ended March 31,
 
 
 
 
 
2016
 
2015
 
Foreign exchange contracts
 
Net gain from investments
   
$
1,192
   
$
597
 
Equity contracts
 
Net gain from investments
     
69
     
131
 
Total
 
 
   
$
1,261
   
$
728
 

The Company is a party to enforceable master netting arrangements for swaps entered into as part of the investment strategy of the Company’s proprietary portfolio.  They are typically not used as hedging instruments.  These swaps, while settled on a net basis with the counterparties, major U.S. financial institutions, are shown gross in assets and liabilities on the condensed consolidated statements of financial condition.  The swaps have a firm contract end date and are closed out and settled when each contract expires. 
 
             
Gross Amounts Not Offset in the
 
 
           
Statements of Financial Condition
 
 
Gross
 
Gross Amounts
 
Net Amounts of
             
 
Amounts of
 
Offset in the
 
Assets Presented
             
 
Recognized
 
Statements of
 
in the Statements
 
Financial
 
Cash Collateral
     
 
Assets
 
Financial Condition
 
of Financial Condition
 
Instruments
 
Received
 
Net Amount
 
Swaps:
(In thousands)
 
March 31, 2016
 
$
185
   
$
-
   
$
185
   
$
(66
)
 
$
-
   
$
119
 
December 31, 2015
   
177
     
-
     
177
     
(81
)
   
-
     
96
 
March 31, 2015
 
$
128
   
$
-
   
$
128
   
$
(23
)
 
$
-
   
$
105
 

                   
Gross Amounts Not Offset in the
 
 
                 
Statements of Financial Condition
 
 
Gross
 
Gross Amounts
 
Net Amounts of
             
 
Amounts of
 
Offset in the
 
Liabilities Presented
             
 
Recognized
 
Statements of
 
in the Statements
 
Financial
 
Cash Collateral
     
 
Liabilities
 
Financial Condition
 
of Financial Condition
 
Instruments
 
Pledged
 
Net Amount
 
Swaps:
(In thousands)
 
March 31, 2016
 
$
66
   
$
-
   
$
66
   
$
(66
)
 
$
-
   
$
-
 
December 31, 2015
   
81
     
-
     
81
     
(81
)
   
-
     
-
 
March 31, 2015
 
$
23
   
$
-
   
$
23
   
$
(23
)
 
$
-
   
$
-
 
 
14


The following is a summary of the cost, gross unrealized gains, gross unrealized losses and fair value of available for sale investments as of March 31, 2016, December 31, 2015 and March 31, 2015:
 
 
March 31, 2016
 
     
Gross
 
Gross
     
     
Unrealized
 
Unrealized
     
 
Cost
 
Gains
 
Losses
 
Fair Value
 
 
(In thousands)
 
Common stocks
 
$
150,000
   
$
12,807
   
$
-
   
$
162,807
 
Closed-end Funds
   
60,865
     
11,828
     
(3,641
)
   
69,052
 
Mutual funds
   
2,468
     
1,749
     
-
     
4,217
 
Total available for sale securities
 
$
213,333
   
$
26,384
   
$
(3,641
)
 
$
236,076
 
 
 
December 31, 2015
 
     
Gross
 
Gross
     
     
Unrealized
 
Unrealized
     
 
Cost
 
Gains
 
Losses
 
Fair Value
 
 
(In thousands)
 
Common stocks
 
$
150,000
   
$
-
   
$
(13,640
)
 
$
136,360
 
Closed-end Funds
   
62,070
     
11,299
     
(778
)
   
72,591
 
Mutual funds
   
2,472
     
1,641
     
(18
)
   
4,095
 
Total available for sale securities
 
$
214,542
   
$
12,940
   
$
(14,436
)
 
$
213,046
 
 
 
March 31, 2015
 
     
Gross
 
Gross
     
     
Unrealized
 
Unrealized
     
 
Cost
 
Gains
 
Losses
 
Fair Value
 
 
(In thousands)
 
Common stocks
 
$
-
   
$
-
   
$
-
   
$
-
 
Closed-end Funds
   
63,538
     
14,150
     
(25
)
   
77,663
 
Mutual funds
   
2,518
     
2,101
     
(34
)
   
4,585
 
Total available for sale securities
 
$
66,056
   
$
16,251
   
$
(59
)
 
$
82,248
 
 
Changes in net unrealized gains, net of taxes, for the three months ended March 31, 2016 and March 31, 2015 of $15.5 million and $0.2 million in gains, respectively, have been included in other comprehensive income, a component of equity, at March 31, 2016 and March 31, 2015.  Return of capital on available for sale securities was $0.3 million and $0.2 million for the three months ended March 31, 2016 and March 31, 2015, respectively.  During the three months ended March 31, 2016, there were no proceeds from the sales of investments available for sale and no gross gains on the sale of investments available for sale.  Proceeds from sales of investments available for sale were approximately $0.1 million for the three months ended March 31, 2015.  For the three months ended March 31, 2015, gross gains on the sale of investments available for sale amounted to $45,000 and were reclassified from other comprehensive income into net gain from investments in the condensed consolidated statements of income.  There were no losses on the sale of investments available for sale for the three months ended March 31, 2016 or March 31, 2015.  The basis on which the cost of a security sold is determined using specific identification.

Investments classified as available for sale that are in an unrealized loss position for which other-than-temporary impairment has not been recognized consisted of the following:
 
 
March 31, 2016
 
December 31, 2015
 
March 31, 2015
 
     
Unrealized
         
Unrealized
         
Unrealized
     
 
Cost
 
Losses
 
Fair Value
 
Cost
 
Losses
 
Fair Value
 
Cost
 
Losses
 
Fair Value
 
(in thousands)
                                   
Common stocks
 
$
-
   
$
-
   
$
-
   
$
150,000
   
$
(13,640
)
 
$
136,360
   
$
-
   
$
-
   
$
-
 
Closed-end Funds
   
39,413
     
(3,641
)
   
35,772
     
40,627
     
(778
)
   
39,849
     
149
     
(25
)
   
124
 
Mutual Funds
   
-
     
-
     
-
     
244
     
(18
)
   
226
     
303
     
(34
)
   
269
 
Total available for sale securities
 
$
39,413
   
$
(3,641
)
 
$
35,772
   
$
190,871
   
$
(14,436
)
 
$
176,435
   
$
452
   
$
(59
)
 
$
393
 
 
At March 31, 2016, there were three holdings in loss positions that were not deemed to be other-than-temporarily impaired due to the length of time that they had been in a loss position and because they passed scrutiny in our evaluation of issuer-specific and industry-specific considerations.  In these specific instances, the investments at March 31, 2016 were closed-end funds with diversified holdings across multiple companies and across multiple industries.  One holding was impaired for three months and two holdings were impaired for nine months at March 31, 2016.  The value of these holdings at March 31, 2016 was $35.8 million.
 

15

At December 31, 2015, there were six holdings in loss positions that were not deemed to be other-than-temporarily impaired due to the length of time that they had been in a loss position and because they passed scrutiny in our evaluation of issuer-specific and industry-specific considerations.  In these specific instances, five of the investments at December 31, 2015 were mutual funds and closed-end funds with diversified holdings across multiple companies and across multiple industries.  Of the fund investments, two holdings were impaired for one month, one for six months, and two for seven months at December 31, 2015. The sixth holding was a common stock and was impaired for one month.  The value of these holdings at December 31, 2015 was $176.4 million.  If these holdings were to continue to be impaired, we may need to record impairment in a future period on the condensed consolidated statement of income for the amount of unrealized loss, which at December 31, 2015 was $14.4 million.

At March 31, 2015, there were three holdings in loss positions that were not deemed to be other-than-temporarily impaired due to the length of time that they had been in a loss position and because it passed scrutiny in our evaluation of issuer-specific and industry-specific considerations.  In these specific instances, the investments at March 31, 2015 were mutual funds and closed-end funds with diversified holdings across multiple companies and across multiple industries.  One holding was impaired for one month, one holding was impaired for five months and one holding was impaired for seven months at March 31, 2015.  The value of these holdings at March 31, 2015 was $0.4 million.
 
There were no losses recognized on AFS securities for the three months ended March 31, 2016 or March 31, 2015.
 
C. Fair Value
 
The following tables present information about the Company’s assets and liabilities by major categories measured at fair value on a recurring basis as of March 31, 2016, December 31, 2015 and March 31, 2015 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value.  Note that the FASB issued new guidance effective for the Company’s first quarter of 2016 amending the current disclosure requirements for investments in certain entities that calculate net asset value per share.  The guidance requires investments for which fair value is measured using the net asset value per share practical expedient to be removed from the fair value hierarchy.  Instead, those investment amounts are provided as a separate item to permit reconciliation of the fair value of investments included in the fair value hierarchy to the line items presented in the condensed consolidated statements of financial condition.
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2016 (in thousands)
 
   
Quoted Prices in Active
   
Significant Other
   
Significant
   
Investments
   
Other Assets
   
Balance as of
 
   
Markets for Identical
   
Observable
   
Unobservable
   
Measured at
   
Not Held at
   
March 31,
 
Assets
 
Assets (Level 1)
   
Inputs (Level 2)
   
Inputs (Level 3)
   
NAV (a)
   
Fair Value (b)
   
2016
 
Cash equivalents
 
$
203,231
   
$
-
   
$
-
   
$
-
   
$
-
   
$
203,231
 
Investments in partnerships
   
-
     
7,581
     
-
     
101,971
     
3,595
     
113,147
 
Investments in securities (including GBL stock):
                                         
AFS - Common stocks
   
162,807
     
-
     
-
     
-
     
-
     
162,807
 
AFS - Mutual funds
   
1,151
     
-
     
-
     
-
     
-
     
1,151
 
Trading - Gov't obligations
   
99,964
     
-
     
-
     
-
     
-
     
99,964
 
Trading - Common stocks
   
79,065
     
-
     
506
     
-
     
-
     
79,571
 
Trading - Mutual funds
   
3,215
     
-
     
-
     
-
     
-
     
3,215
 
Trading - Other
   
428
     
185
     
305
     
-
     
-
     
918
 
Total investments in securities
   
346,630
     
185
     
811
     
-
     
-
     
347,626
 
Investments in affiliated registered investment companies:
                                         
AFS - Closed-end Funds
   
69,052
     
-
     
-
     
-
     
-
     
69,052
 
AFS - Mutual Funds
   
3,066
     
-
     
-
     
-
     
-
     
3,066
 
Trading - Mutual funds
   
43,798
     
-
     
-
     
-
     
-
     
43,798
 
Total investments in affiliated                                                 
  registered investment companies
   
115,916
     
-
     
-
     
-
     
-
     
115,916
 
Total investments
   
462,546
     
7,766
     
811
     
101,971
     
3,595
     
576,689
 
Total assets at fair value
 
$
665,777
   
$
7,766
   
$
811
   
$
101,971
   
$
3,595
   
$
779,920
 
Liabilities
                                               
Trading - Common stocks
 
$
7,947
   
$
-
   
$
-
   
$
-
   
$
-
   
$
7,947
 
Trading - Other
   
-
     
67
     
-
     
-
     
-
     
67
 
Securities sold, not yet purchased
 
$
7,947
   
$
67
   
$
-
   
$
-
   
$
-
   
$
8,014
 
 

16

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2015 (in thousands)
 
   
Quoted Prices in Active
   
Significant Other
   
Significant
   
Investments
   
Other Assets
   
Balance as of
 
   
Markets for Identical
   
Observable
   
Unobservable
   
Measured at
   
Not Held at
   
December 31,
 
Assets
 
Assets (Level 1)
   
Inputs (Level 2)
   
Inputs (Level 3)
   
NAV (a)
   
Fair Value (b)
   
2015
 
Cash equivalents
 
$
205,733
   
$
-
   
$
-
   
$
-
   
$
-
   
$
205,733
 
Investments in partnerships
   
-
     
13,953
     
-
     
87,501
     
3,597
     
105,051
 
Investments in securities (including GBL stock):
                                         
AFS - Common stocks
   
136,360
     
-
     
-
     
-
     
-
     
136,360
 
AFS - Mutual funds
   
1,143
     
-
     
-
     
-
     
-
     
1,143
 
Trading - Gov't obligations
   
99,940
     
-
     
-
     
-
     
-
     
99,940
 
Trading - Common stocks
   
91,686
     
-
     
508
     
-
     
-
     
92,194
 
Trading - Mutual funds
   
3,216
     
-
     
-
     
-
     
-
     
3,216
 
Trading - Other
   
230
     
236
     
305
     
-
     
-
     
771
 
Total investments in securities
   
332,575
     
236
     
813
     
-
     
-
     
333,624
 
Investments in affiliated registered investment companies:
                                         
AFS - Closed-end Funds
   
72,591
     
-
     
-
     
-
     
-
     
72,591
 
AFS - Mutual Funds
   
2,952
     
-
     
-
     
-
     
-
     
2,952
 
Trading - Mutual funds
   
43,133
     
-
     
-
     
-
     
-
     
43,133
 
Total investments in affiliated                                                 
  registered investment companies
   
118,676
     
-
     
-
     
-
     
-
     
118,676
 
Total investments
   
451,251
     
14,189
     
813
     
87,501
     
3,597
     
557,351
 
Total assets at fair value
 
$
656,984
   
$
14,189
   
$
813
   
$
87,501
   
$
3,597
   
$
763,084
 
Liabilities
                                               
Trading - Common stocks
 
$
9,537
   
$
-
   
$
-
   
$
-
   
$
-
   
$
9,537
 
Trading - Other
   
-
     
86
     
-
     
-
     
-
     
86
 
Securities sold, not yet purchased
 
$
9,537
   
$
86
   
$
-
   
$
-
   
$
-
   
$
9,623
 
 
Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2015 (in thousands)
 
   
Quoted Prices in Active
   
Significant Other
   
Significant
   
Investments
   
Other Assets
   
Balance as of
 
   
Markets for Identical
   
Observable
   
Unobservable
   
Measured at
   
Not Held at
   
March 31,
 
Assets
 
Assets (Level 1)
   
Inputs (Level 2)
   
Inputs (Level 3)
   
NAV (a)
   
Fair Value (b)
   
2015
 
Cash equivalents
 
$
320,313
   
$
-
   
$
-
   
$
-
   
$
-
   
$
320,313
 
Investments in partnerships
   
-
     
21,244
     
-
     
83,627
     
2,069
     
106,940
 
Investments in securities:
                                               
AFS - Common stocks
   
-
     
-
     
-
     
-
     
-
     
-
 
AFS - Mutual funds
   
1,288
     
-
     
-
     
-
     
-
     
1,288
 
Trading - Gov't obligations
   
9,998
     
-
     
-
     
-
     
-
     
9,998
 
Trading - Common stocks
   
104,071
     
180
     
939
     
-
     
-
     
105,190
 
Trading - Mutual funds
   
3,596
     
-
     
-
     
-
     
-
     
3,596
 
Trading - Other
   
355
     
128
     
279
     
-
     
-
     
762
 
Total investments in securities
   
119,308
     
308
     
1,218
     
-
     
-
     
120,834
 
Investments in affiliated registered investment companies:
                                         
AFS - Closed-end Funds
   
77,663
     
-
     
-
     
-
     
-
     
77,663
 
AFS - Mutual Funds
   
3,297
     
-
     
-
     
-