Edgar Filing: GAMCO INVESTORS, INC. ET AL

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, 2015

☐ 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. 001-14761

GAMCO INVESTORS, INC.

(Exact name of Registrant as specified in its charter)

Delaware		13-4007862
(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)

(914) 921-3700

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, 2015
Class A Common Stock, .001 par value	(Including 705,050 restricted stock awards)	6,567,119
Class B Common Stock, .001 par value		19,219,260

INDEX

GAMCO INVESTORS, INC. AND SUBSIDIARIES


PART I.	FINANCIAL INFORMATION


Item 1.	Unaudited Condensed Consolidated Financial Statements

	Condensed Consolidated Statements of Income:
	- Three months ended March 31, 2015 and 2014


	Condensed Consolidated Statements of Comprehensive Income:
	- Three months ended March 31, 2015 and 2014


	Condensed Consolidated Statements of Financial Condition:
	- March 31, 2015
	- December 31, 2014
	- March 31, 2014

	Condensed Consolidated Statements of Equity:
	- Three months ended March 31, 2015 and 2014

	Condensed Consolidated Statements of Cash Flows:
	- Three months ended March 31, 2015 and 2014

	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

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

UNAUDITED

(Dollars in thousands, except per share data)

	Three Months Ended
	March 31,
	2015			2014
Revenues
Investment advisory and incentive fees	$	88,037		$	87,797
Distribution fees and other income		13,743			14,873
Institutional research services		2,065			1,807
Total revenues		103,845			104,477
Expenses
Compensation		44,494			43,897
Management fee		4,437			4,728
Distribution costs		14,283			13,963
Other operating expenses		6,686			5,390
Total expenses		69,900			67,978

Operating income		33,945			36,499
Other income
Net gain from investments		6,958			6,944
Interest and dividend income		1,054			1,141
Interest expense		(2,019	)		(1,992	)
Total other income, net		5,993			6,093
Income before income taxes		39,938			42,592
Income tax provision		15,179			14,616
Net income		24,759			27,976
Net income/(loss) attributable to noncontrolling interests		(17	)		22
Net income attributable to GAMCO Investors, Inc.'s shareholders	$	24,776		$	27,954

Net income attributable to GAMCO Investors, Inc.'s shareholders per share:
Basic	$	0.99		$	1.10

Diluted	$	0.97		$	1.09

Weighted average shares outstanding:
Basic		25,132			25,481

Diluted		25,414			25,684

Dividends declared:	$	0.07		$	0.06

See accompanying notes.

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

UNAUDITED

(Dollars in thousands, except per share data)

	Three Months Ended
	March 31,
	2015			2014

Net income	$	24,759		$	27,976
Other comprehensive loss, net of tax:
Foreign currency translation		(42	)		8
Net unrealized losses on securities available for sale (a)		(467	)		(2,697	)
Other comprehensive income loss		(509	)		(2,689	)

Comprehensive income		24,250			25,287
Less: Comprehensive loss/(income) attributable to noncontrolling interests		17			(22	)

Comprehensive income attributable to GAMCO Investors, Inc.	$	24,267		$	25,265

(a) Net of income tax benefit of ($274) and ($1,584), respectively.

See accompanying notes.

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

UNAUDITED

(Dollars in thousands, except per share data)

	March 31,			December 31,			March 31,
	2015			2014			2014
ASSETS
Cash and cash equivalents	$	331,634		$	298,224		$	243,142
Investments in securities		158,788			259,537			234,414
Investments in sponsored registered investment companies		120,831			39,537			42,433
Investments in partnerships		106,943			107,637			105,849
Receivable from brokers		21,615			76,079			54,084
Investment advisory fees receivable		33,703			41,872			33,035
Income tax receivable		2,443			2,477			445
Other assets		23,950			41,067			26,418
Total assets	$	799,907		$	866,430		$	739,820

LIABILITIES AND EQUITY
Payable to brokers	$	10,174		$	43,409		$	11,370
Income taxes payable and deferred tax liabilities		32,830			27,939			41,427
Capital lease obligation		5,234			5,253			5,307
Compensation payable		43,394			39,983			41,447
Securities sold, not yet purchased		8,569			10,595			10,788
Mandatorily redeemable noncontrolling interests		1,298			1,302			1,337
Accrued expenses and other liabilities		33,618			29,657			30,658
Sub-total		135,117			158,138			142,334

5.875% Senior notes (due June 1, 2021)		100,000			100,000			100,000
Zero coupon subordinated debentures, Face value: $10.4 million at March 31, 2015, $13.1
million at December 31, 2014 and $13.8 million at March 31, 2014 (due December 31, 2015)		9,936			12,163			12,098
Total liabilities		245,053			270,301			254,432

Redeemable noncontrolling interests		5,519			68,334			8,464
Commitments and contingencies (Note J)
Equity
GAMCO Investors, Inc. stockholders' equity
Preferred stock, $.001 par value; 10,000,000 shares authorized;
none issued and outstanding
Class A Common Stock, $0.001 par value; 100,000,000 shares authorized;
15,357,733, 15,341,433 and 15,071,087 issued, respectively; 6,591,119,
6,616,212 and 6,639,106 outstanding, respectively		14			14			14
Class B Common Stock, $0.001 par value; 100,000,000 shares authorized;
24,000,000 shares issued; 19,219,260, 19,239,260 and 19,345,706 shares
outstanding, respectively		19			19			19
Additional paid-in capital		293,958			291,681			285,215
Retained earnings		625,926			602,950			532,839
Accumulated other comprehensive income		24,505			25,014			27,550
Treasury stock, at cost (8,766,614, 8,725,221 and 8,431,981 shares, respectively)		(397,813	)		(394,617	)		(371,525	)
Total GAMCO Investors, Inc. stockholders' equity		546,609			525,061			474,112
Noncontrolling interests		2,726			2,734			2,812
Total equity		549,335			527,795			476,924

Total liabilities and equity	$	799,907		$	866,430		$	739,820

See accompanying notes.

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

UNAUDITED

(In thousands)

For the Three months ended March 31, 2015

				GAMCO Investors, Inc. stockholders
											Accumulated
						Additional					Other									Redeemable
	Noncontrolling			Common		Paid-in		Retained			Comprehensive			Treasury						Noncontrolling
	Interests			Stock		Capital		Earnings			Income			Stock			Total			Interests
Balance at December 31, 2014	$	2,734		$	33	$	291,681	$	602,950		$	25,014		$	(394,617	)	$	527,795		$	68,334
Redemptions of
noncontrolling interests		-			-		-		-			-			-			-			(441	)
Consolidation of consolidated
feeder fund		-			-		-		-			-			-			-			891
Deconsolidation of offshore
fund		-			-		-		-			-			-			-			(63,256	)
Net income (loss)		(8	)		-		-		24,776			-			-			24,768			(9	)
Net unrealized losses on
securities available for sale,
net of income tax benefit ($265)		-			-		-		-			(451	)		-			(451	)		-
Amounts reclassified from
accumulated other
comprehensive income,
net of income tax benefit ($9)		-			-		-		-			(16	)		-			(16	)		-
Foreign currency translation		-			-		-		-			(42	)		-			(42	)		-
Dividends declared ($0.07 per
share)		-			-		-		(1,800	)		-			-			(1,800	)		-
Stock based compensation
expense		-			-		2,277		-			-			-			2,277			-
Purchase of treasury stock		-			-		-		-			-			(3,196	)		(3,196	)		-
Balance at March 31, 2015	$	2,726		$	33	$	293,958	$	625,926		$	24,505		$	(397,813	)	$	549,335		$	5,519

See accompanying notes.

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

UNAUDITED

(In thousands)

For the Three months ended March 31, 2014

				GAMCO Investors, Inc. stockholders
											Accumulated
						Additional					Other									Redeemable
	Noncontrolling			Common		Paid-in		Retained			Comprehensive			Treasury						Noncontrolling
	Interests			Stock		Capital		Earnings			Income			Stock			Total			Interests
Balance at December 31, 2013	$	2,851		$	33	$	282,496	$	506,441		$	30,239		$	(361,878	)	$	460,182		$	6,751
Redemptions of redeemable
noncontrolling interests		-			-		-		-			-			-			-			-
Contributions from redeemable
noncontrolling interests		-			-		-		-			-			-			-			1,652
Net income (loss)		(39	)		-		-		27,954			-			-			27,915			61
Net unrealized gains on
securities available for sale,
net of income tax ($175)		-			-		-		-			297			-			297			-
Amount reclassed from
accumulated other
comprehensive income,
net of income tax benefit ($1,759)		-			-		-		-			(2,994	)		-			(2,994	)		-
Foreign currency translation		-			-		-		-			8			-			8			-
Dividends declared ($0.06 per
share)		-			-		-		(1,556	)		-			-			(1,556	)		-
Stock based compensation
expense		-			-		1,700		-			-			-			1,700			-
Exercise of stock options
including tax benefit ($173)		-			-		1,019		-			-			-			1,019			-
Purchase of treasury stock		-			-		-		-			-			(9,647	)		(9,647	)		-
Balance at March 31, 2014	$	2,812		$	33	$	285,215	$	532,839		$	27,550		$	(371,525	)	$	476,924		$	8,464

See accompanying notes.

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

(In thousands)

	Three Months Ended
	March 31,
	2015			2014
Operating activities
Net income	$	24,759		$	27,976
Adjustments to reconcile net income to net cash provided by operating activities:
Equity in net gains from partnerships		(2,099	)		(426	)
Depreciation and amortization		160			169
Stock based compensation expense		2,277			1,700
Deferred income taxes		(605	)		(1,318	)
Tax benefit from exercise of stock options		-			173
Foreign currency translation gain/(loss)		(42	)		8
Other-than-temporary loss on available for sale securities		-			-
Cost basis of donated securities		-			1,267
Gains on sales of available for sale securities		(48	)		(1,612	)
Accretion of zero coupon debentures		213			223
Loss on extinguishment of debt		156			5
(Increase) decrease in assets:
Investments in trading securities		4,603			(324	)
Investments in partnerships:
Contributions to partnerships		(9,870	)		(9,448	)
Distributions from partnerships		13,525			17
Receivable from brokers		6,478			(4,623	)
Investment advisory fees receivable		7,959			18,471
Income tax receivable and deferred tax assets		34			-
Other assets		16,861			(222	)
Increase (decrease) in liabilities:
Payable to brokers		4,250			606
Income taxes payable and deferred tax liabilities		5,772			4,482
Compensation payable		3,417			6,783
Mandatorily redeemable noncontrolling interests		(4	)		(18	)
Accrued expenses and other liabilities		4,630			(1,898	)
Total adjustments		57,667			14,015
Net cash provided by operating activities	$	82,426		$	41,991

GAMCO INVESTORS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED (continued)

(In thousands)

	Three Months Ended
	March 31,
	2015			2014
Investing activities
Purchases of available for sale securities	$	(41,397	)	$	(4,782	)
Proceeds from sales of available for sale securities		132			3,880
Return of capital on available for sale securities		217			323
Net cash provided by investing activities		(41,048	)		(579	)

Financing activities
Contributions from redeemable noncontrolling interests		-			1,652
Redemptions of redeemable noncontrolling interests		(441	)		-
Redemptions of noncontrolling interests		-			-
Proceeds from exercise of stock options		-			846
Dividends paid		(1,759	)		(1,528	)
Repurchase of zero coupon subordinated debentures		(2,596	)		(41	)
Purchase of treasury stock		(3,196	)		(9,647	)
Net cash used in financing activities		(7,992	)		(8,718	)
Effect of exchange rates on cash and cash equivalents		11			(3	)
Net increase in cash and cash equivalents		33,397			32,691
Cash and cash equivalents at beginning of period		298,224			210,451
Increase in cash from deconsolidation		13			-
Cash and cash equivalents at end of period	$	331,634		$	243,142
Supplemental disclosures of cash flow information:
Cash paid for interest	$	316		$	294
Cash paid for taxes	$	9,078		$	10,662

Non-cash activity:
- For the three months ended March 31, 2015 and March 31, 2014, the Company accrued dividends on restricted stock awards of $41 and $28, respectively.
- On January 1, 2015, GAMCO Investors, 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 $63,267 of noncontrolling interests.

See accompanying notes.

GAMCO INVESTORS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

March 31, 2015

(Unaudited)

A. Significant Accounting Policies

Basis of Presentation

Unless we have indicated otherwise, or the context otherwise requires, references in this report to “GAMCO Investors, Inc.,” “GAMCO,” “the Company,” “GBL,” “we,” “us” and “our” or similar terms are to GAMCO Investors, Inc., its predecessors and its subsidiaries.

The unaudited interim condensed consolidated financial statements of GAMCO included herein have been prepared in conformity with generally accepted accounting principles (“GAAP”) in the United States 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 GAMCO for the interim periods presented and are not necessarily indicative of a full year’s results.

The condensed consolidated financial statements include the accounts of GAMCO and its subsidiaries. Intercompany accounts and transactions are eliminated.

These condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2014 from which the accompanying condensed consolidated financial statements were derived.

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, 2016, 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 consolidated financial statements.

In June 2014, the FASB issued an accounting update clarifying that entities should treat performance targets that could be met after the requisite service period of a share-based payment award as performance conditions that affect vesting. Therefore, an entity would not record compensation expense (measured as of the grant date) for an award where transfer to the employee is contingent upon satisfaction of the performance target until it becomes probable that the performance target will be met. The guidance is effective for the Company beginning January 1, 2016. Early adoption is permitted. This guidance is not expected to have a material impact on the Company’s consolidated financial statements.

In February 2015, the FASB issued an accounting update amending the consolidation requirements under GAAP. This guidance is effective for the Company beginning January 1, 2016. Early adoption is permitted. The Company is continuing to analyze the impact, if any, that this update may have on its consolidated financial statements.

B. Investment in Securities

Investments in securities at March 31, 2015, December 31, 2014 and March 31, 2014 consisted of the following:

	March 31, 2015				December 31, 2014				March 31, 2014
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
Government obligations	$	9,998	$	9,998	$	18,994	$	18,996	$	25,989	$	25,999
Common stocks		84,646		105,190		170,977		195,029		113,508		141,276
Mutual funds		2,505		3,596		2,432		3,498		21,131		23,404
Other investments		549		762		743		1,704		544		749
Total trading securities		97,698		119,546		193,146		219,227		161,172		191,428

Available for sale securities:
Common stocks		13,609		37,954		13,637		38,942		15,003		41,538
Mutual funds		627		1,288		681		1,368		700		1,448
Total available for sale securities		14,236		39,242		14,318		40,310		15,703		42,986

Total investments in securities	$	111,934	$	158,788	$	207,464	$	259,537	$	176,875	$	234,414

Securities sold, not yet purchased at March 31, 2015, December 31, 2014 and March 31, 2014 consisted of the following:

	March 31, 2015				December 31, 2014				March 31, 2014
	Proceeds		Fair Value		Proceeds		Fair Value		Proceeds		Fair Value
Trading securities:	(In thousands)
Common stocks	$	8,485	$	8,530	$	9,835	$	9,960	$	8,837	$	10,469
Other investments		3		39		1		635		85		319
Total securities sold, not yet purchased	$	8,488	$	8,569	$	9,836	$	10,595	$	8,922	$	10,788

Investments in sponsored registered investment companies at March 31, 2015, December 31,2014 and March 31, 2014 consisted of the following:

	March 31, 2015				December 31, 2014				March 31, 2014
	Cost		Fair Value		Cost		Fair Value		Cost		Fair Value
	(In thousands)
Trading securities:
Mutual funds	$	37,097	$	39,871	$	1	$	1	$	19	$	12
Total trading securities		37,097		39,871		1		1		19		12

Available for sale securities:
Closed-end funds		63,538		77,663		21,962		36,323		22,565		38,980
Mutual funds		1,891		3,297		1,898		3,213		1,939		3,441
Total available for sale securities		65,429		80,960		23,860		39,536		24,504		42,421

Total investments in sponsored
registered investment companies	$	102,526	$	120,831	$	23,861	$	39,537	$	24,523	$	42,433

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, 2015 and 2014 (in thousands):

Amount							Affected Line Items	Reason for
Reclassified							in the Statements	Reclassification
from AOCI							Of Income	from AOCI
Three months ended March 31,
2015				2014
	$	25		$	1,612		Net gain/(loss) from investments	Realized gain on sale of AFS securities
		-			3,141		Other operating expenses/net gain from investments	Realized gain on donation of AFS securities
		25			4,753		Income before income taxes
		(9	)		(1,759	)	Income tax provision
	$	16		$	2,994		Net income

The Company recognizes all 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. For the three months ended March 31, 2015 and 2014, the Company had transactions in equity derivatives which resulted in net gains of $131,000 and net losses of $190,000, respectively. At March 31, 2015, December 31, 2014 and March 31, 2014, we held derivative contracts on 0.4 million equity shares, 3.8 million equity shares and 1.9 million equity shares, respectively, and the fair value was $88,000, $262,000 and ($107,000), respectively; these are included in investments in securities in the condensed consolidated statements of financial condition. These transactions are not designated as hedges for accounting purposes, and therefore changes in fair values of these derivatives are included in net gain/(loss) from investments in the condensed consolidated statements of income.

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 of		Financial			Cash Collateral
	Assets		Financial Condition		Financial Condition		Instruments			Received		Net Amount
Swaps:	(in thousands)
March 31, 2015	$	128	$	-	$	128	$	(23	)	$	-	$	105
December 31, 2014		896		-		896		(634	)		-		262
March 31, 2014	$	198	$	-	$	198	$	(198	)	$	-	$	-

							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 of		Financial			Cash Collateral
	Liabilities		Financial Condition		Financial Condition		Instruments			Pledged		Net Amount
Swaps:	(in thousands)
March 31, 2015	$	23	$	-	$	23	$	(23	)	$	-	$	-
December 31, 2014		634		-		634		(634	)		-		-
March 31, 2014	$	277	$	-	$	277	$	(198	)	$	-	$	79

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, 2015, December 31, 2014 and March 31, 2014:

	March 31, 2015
			Gross		Gross
			Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(In thousands)
Common stocks	$	13,609	$	24,345	$	-		$	37,954
Closed-end Funds		63,538		14,150		(25	)		77,663
Mutual funds		2,518		2,101		(34	)		4,585
Total available for sale securities	$	79,665	$	40,596	$	(59	)	$	120,202

	December 31, 2014
			Gross		Gross
			Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(In thousands)
Common stocks	$	13,637	$	25,305	$	-		$	38,942
Closed-end Funds		21,962		14,398		(37	)		36,323
Mutual funds		2,579		2,030		(28	)		4,581
Total available for sale securities	$	38,178	$	41,733	$	(65	)	$	79,846

	March 31, 2014
			Gross		Gross
			Unrealized		Unrealized
	Cost		Gains		Losses			Fair Value
	(In thousands)
Common stocks	$	15,003	$	26,535	$	-		$	41,538
Closed-end Funds		22,565		16,477		(62	)		38,980
Mutual funds		2,639		2,250		-			4,889
Total available for sale securities	$	40,207	$	45,262	$	(62	)	$	85,407

Unrealized changes in fair value, net of taxes, for the three months ended March 31, 2015 and March 31, 2014 of $0.5 million in losses and $2.7 million in losses, respectively, have been included in other comprehensive income, a component of equity, at March 31, 2015 and March 31, 2014. Return of capital on available for sale securities was $0.2 million and $0.3 million for the three months ended March 31, 2015 and March 31, 2014, respectively. Proceeds from sales of investments available for sale were approximately $0.1 million and $3.9 million for the three months ended March 31, 2015 and March 31, 2014, respectively. For the three months ended March 31, 2015 and March 31, 2014, gross gains on the sale of investments available for sale amounted to $48,000 and $1.6 million, respectively, 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, 2015 or March 31, 2014. 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, 2015							December 31, 2014							March 31, 2014
			Unrealized							Unrealized							Unrealized
	Cost		Losses			Fair Value		Cost		Losses			Fair Value		Cost		Losses			Fair Value
(in thousands)
Cosed-end funds	$	149	$	(25	)	$	124	$	812	$	(37	)	$	775	$	828	$	(62	)	$	766
Mutual Funds		303		(34	)		269		303		(28	)		275		-		-			-
Total	$	452	$	(59	)	$	393	$	1,115	$	(65	)	$	1,050	$	828	$	(62	)	$	766

At March 31, 2015, there were three holdings in loss positions which 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, 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.

At December 31, 2014, there were four holdings in loss positions which 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 December 31, 2014 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 for three months and two for four months at December 31, 2014. The value of these holdings at December 31, 2014 was $1.1 million.

At March 31, 2014, there were two holdings in loss positions which 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, 2014 were closed-end funds with diversified holdings across multiple companies and across multiple industries. One holding was impaired for seven months and one for ten months at March 31, 2014. The value of these holdings at March 31, 2014 was $0.8 million.

There were no losses recognized on AFS securities for the three months ended March 31, 2015 or March 31, 2014.

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, 2015, December 31, 2014 and March 31, 2014 and indicates the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value:

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		Balance as of
	Markets for Identical		Observable		Unobservable		March 31,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2015
Cash equivalents	$	331,419	$	-	$	-	$	331,419
Investments in partnerships		-		21,243		-		21,243
Investments in securities:
AFS - Common stocks		37,954		-		-		37,954
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		157,262		308		1,218		158,788
Investments in sponsored registered investment companies:
AFS - Closed-end Funds		77,663		-		-		77,663
AFS - Mutual Funds		3,297		-		-		3,297
Trading - Mutual funds		39,871		-		-		39,871
Total investments in sponsored
registered investment companies		120,831		-		-		120,831
Total investments		278,093		21,551		1,218		300,862
Total assets at fair value	$	609,512	$	21,551	$	1,218	$	632,281
Liabilities
Trading - Common stocks	$	8,530	$	-	$	-	$	8,530
Trading - Other		-		39		-		39
Securities sold, not yet purchased	$	8,530	$	39	$	-	$	8,569

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of December 31, 2014 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		December 31,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2014
Cash equivalents	$	297,971	$	-	$	-	$	297,971
Investments in partnerships		-		23,803		-		23,803
Investments in securities:
AFS - Common stocks		38,942		-		-		38,942
AFS - Mutual funds		1,368		-		-		1,368
Trading - Gov't obligations		18,996		-		-		18,996
Trading - Common stocks		193,735		1		1,293		195,029
Trading - Mutual funds		3,498		-		-		3,498
Trading - Other		513		897		294		1,704
Total investments in securities		257,052		898		1,587		259,537
Investments in sponsored registered investment companies:
AFS - Closed-end Funds		36,323		-		-		36,323
AFS - Mutual Funds		3,213		-		-		3,213
Trading - Mutual funds		1		-		-		1
Total investments in sponsored
registered investment companies		39,537		-		-		39,537
Total investments		296,589		24,701		1,587		322,877
Total assets at fair value	$	594,560	$	24,701	$	1,587	$	620,848
Liabilities
Trading - Common stocks	$	9,960	$	-	$	-	$	9,960
Trading - Other		-		635		-		635
Securities sold, not yet purchased	$	9,960	$	635	$	-	$	10,595

Assets and Liabilities Measured at Fair Value on a Recurring Basis as of March 31, 2014 (in thousands)

	Quoted Prices in Active		Significant Other		Significant		Balance as of
	Markets for Identical		Observable		Unobservable		March 31,
Assets	Assets (Level 1)		Inputs (Level 2)		Inputs (Level 3)		2014
Cash equivalents	$	242,917	$	-	$	-	$	242,917
Investments in partnerships		-		24,080		-		24,080
Investments in securities:
AFS - Common stocks		41,538		-		-		41,538
AFS - Mutual funds		1,448		-		-		1,448
Trading - Gov't obligations		25,999		-		-		25,999
Trading - Common stocks		140,575		1		700		141,276
Trading - Mutual funds		23,404		-		-		23,404
Trading - Other		253		212		284		749
Total investments in securities		233,217		213		984		234,414
Investments in sponsored registered investment companies:
AFS - Closed-end Funds		38,980		-		-		38,980
AFS - Mutual Funds		3,441		-		-		3,441
Trading - Mutual funds		12		-		-		12
Total investments in sponsored
registered investment companies		42,433		-		-		42,433
Total investments		275,650		24,293		984		300,927
Total assets at fair value	$	518,567	$	24,293	$	984	$	543,844
Liabilities
Trading - Common stocks	$	10,469	$	-	$	-	$	10,469
Trading - Other