Investments (Tables)

6 Months Ended

Jun. 30, 2014

Schedule of the separate account managed by TP LLC

The following is a summary of the separate account managed by Third Point LLC:



	June 30, 2014		December 31, 2013
Assets	($ in thousands)
Total investments in securities and commodities	$	1,805,225	$	1,460,864
Cash and cash equivalents	9		869
Restricted cash and cash equivalents	128,396		100,563
Due from brokers	74,046		98,386
Securities purchased under an agreement to sell	33,850		38,147
Derivative assets	22,516		39,045
Interest and dividends receivable	3,736		2,604
Other assets	1,562		933
Total assets	2,069,340		1,741,411
Liabilities and non-controlling interest
Accounts payable and accrued expenses	247		1,759
Securities sold, not yet purchased, at fair value	46,994		56,056
Due to brokers	281,091		44,870
Derivative liabilities	10,528		8,819
Performance fee payable to related party	22,002		—
Interest and dividends payable	816		748
Non-controlling interest	20,210		69,717
Total liabilities and non-controlling interest	381,888		181,969
Total net investments managed by Third Point LLC	$	1,687,452	$	1,559,442

Schedule of investments, categorized by the level of the fair value hierarchy

The following tables present the Company’s investments, categorized by the level of the fair value hierarchy as of June 30, 2014 and December 31, 2013:



	June 30, 2014
	Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs		Total
	(Level 1)		(Level 2)		(Level 3)		Total
Assets	($ in thousands)
Equity securities	$	1,118,096	$	38,979	$	—	$	1,157,075
Private common equity securities	—		2,988		2,300		5,288
Total equities	1,118,096		41,967		2,300		1,162,363
Asset-backed securities	—		369,017		2,441		371,458
Bank debts	—		11,829		—		11,829
Corporate bonds	—		99,711		5,153		104,864
Municipal bonds	—		19,431		—		19,431
Sovereign debt	—		43,841		30		43,871
Total debt securities	—		543,829		7,624		551,453
Investments in limited partnerships	—		66,492		5,771		72,263
Options	2,619		164		—		2,783
Rights and warrants	297		—		—		297
Trade claims	—		16,066		—		16,066
Catastrophe bond	—		2,003		—		2,003
Total other investments	2,916		84,725		5,771		93,412
Derivative assets (free standing)	—		22,516		—		22,516
Total assets	$	1,121,012	$	693,037	$	15,695	$	1,829,744
Liabilities
Equity securities	$	4,008	$	—	$	—	$	4,008
Sovereign debt	—		33,213		—		33,213
Corporate bonds	—		4,699		—		4,699
Options	3,614		1,460		—		5,074
Total securities sold, not yet purchased	7,622		39,372		—		46,994
Derivative liabilities (free standing)	532		9,996		—		10,528
Derivative liabilities (embedded)	—		—		5,538		5,538
Total liabilities	$	8,154	$	49,368	$	5,538	$	63,060



	December 31, 2013
	Quoted prices in active markets		Significant other observable inputs		Significant unobservable inputs		Total
	(Level 1)		(Level 2)		(Level 3)		Total
Assets	($ in thousands)
Equity securities	$	839,903	$	17,914	$	—	$	857,817
Private common equity securities	—		94,282		2,012		96,294
Total equities	839,903		112,196		2,012		954,111
Asset-backed securities	—		325,133		400		325,533
Bank debts	—		8,017		—		8,017
Corporate bonds	—		82,139		4,610		86,749
Municipal bonds	—		10,486		—		10,486
Sovereign debt	—		10,639		—		10,639
Total debt securities	—		436,414		5,010		441,424
Investments in limited partnerships	—		29,286		5,292		34,578
Options	6,284		6,785		—		13,069
Rights and warrants	1		—		—		1
Trade claims	—		17,681		—		17,681
Total other investments	6,285		53,752		5,292		65,329
Derivative assets	321		38,724		—		39,045
Total assets	$	846,509	$	641,086	$	12,314	$	1,499,909
Liabilities
Equity securities	$	5,207	$	—	$	—	$	5,207
Sovereign debt	—		37,592		—		37,592
Corporate bonds	—		3,372		—		3,372
Options	4,714		5,171		—		9,885
Total securities sold, not yet purchased	9,921		46,135		—		56,056
Derivative liabilities (free standing)	441		8,378		—		8,819
Derivative liabilities (embedded)	—		—		4,430		4,430
Total liabilities	$	10,362	$	54,513	$	4,430	$	69,305

Schedule of reconciliation of the balances for all investments measured at fair value using significant unobservable inputs

The following table presents the reconciliation for all investments measured at fair value using significant unobservable inputs (Level 3) for the three and six months ended June 30, 2014 and 2013:



	January 1, 2014			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			June 30, 2014
	($ in thousands)
Assets
Asset-backed securities	$	400		$	(1,631	)	$	3,805	$	(1,903	)	$	1,770		$	2,441
Corporate bonds	4,610			—			821		(332		)	54			5,153
Private common equity securities	2,012			—			—		—			288			2,300
Investments in limited partnerships	5,292			—			54		—			425			5,771
Sovereign debt	—			—			30		—			—			30
Total assets	$	12,314		$	(1,631	)	$	4,710	$	(2,235	)	$	2,537		$	15,695
Liabilities
Derivative liabilities (embedded)	$	(4,430	)	$	—		$	—	$	(783	)	$	(325	)	$	(5,538	)

	April 1, 2014			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			June 30, 2014
	($ in thousands)
Assets
Asset-backed securities	$	3,552		$	(3,552	)	$	2,441	$	—		$	—		$	2,441
Corporate bonds	4,781			—			734		(332		)	(30		)	5,153
Private common equity securities	2,012			—			—		—			288			2,300
Investment in limited partnership	5,108			—			—		—			663			5,771
Sovereign debt	—			—			30		—			—			30
Total assets	$	15,453		$	(3,552	)	$	3,205	$	(332	)	$	921		$	15,695
Liabilities
Derivative liabilities (embedded)	$	(5,356	)	$	—		$	—	$	—		$	(182	)	$	(5,538	)



	January 1, 2013			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			June 30, 2013
	($ in thousands)
Assets
Asset-backed securities	$	—		$	309		$	149	$	—		$	(264	)	$	194
Bank debt	54			(54		)	—		—			—			—
Corporate bonds	1,046			(1,302		)	3,984		(1,120		)	1,696			4,304
Private common equity securities	2,757			—			1,654		(1,795		)	857			3,473
Investment in limited partnership	—			—			1,288		(342		)	(43		)	903
Total assets	$	3,857		$	(1,047	)	$	7,075	$	(3,257	)	$	2,246		$	8,874
Liabilities
Derivative liabilities (free standing)	$	—		$	—		$	—	$	(3,345	)	$	1,105		$	(2,240	)
Derivative liabilities (embedded)	(2,510		)	—			—		(1,460		)	(210		)	(4,180		)
Total liabilities	$	(2,510	)	$	—		$	—	$	(4,805	)	$	895		$	(6,420	)

	April 1, 2013			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			June 30, 2013
	($ in thousands)
Assets
Asset-backed securities	$	—		$	309		$	149	$	—		$	(264	)	$	194
Corporate bonds	9,354			(8,224		)	3,984		(1,120		)	310			4,304
Private common equity securities	4,406			—			—		(1,795		)	862			3,473
Investment in limited partnership	—			—			1,288		(342		)	(43		)	903
Total assets	$	13,760		$	(7,915	)	$	5,421	$	(3,257	)	$	865		$	8,874
Liabilities
Derivative liabilities (free standing)	$	(1,332	)	$	—		$	—	$	(1,250	)	$	342		$	(2,240	)
Derivative liabilities (embedded)	(2,680		)	—			—		(1,460		)	(40		)	(4,180		)
Total liabilities	$	(4,012	)	$	—		$	—	$	(2,710	)	$	302		$	(6,420	)

(1) Total net change in realized and unrealized gain (loss) recorded on Level 3 financial instruments are included in net investment income in the condensed consolidated statements of income.