Investments (Tables)

9 Months Ended

Sep. 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:



	September 30, 2014		December 31, 2013
Assets	($ in thousands)
Total investments in securities and commodities	$	1,713,000	$	1,460,864
Cash and cash equivalents	10,003		869
Restricted cash and cash equivalents	160,618		100,563
Due from brokers	182,927		98,386
Securities purchased under an agreement to sell	19,897		38,147
Derivative assets	37,260		39,045
Interest and dividends receivable	5,021		2,604
Other assets	799		933
Total assets	2,129,525		1,741,411
Liabilities and non-controlling interest
Accounts payable and accrued expenses	299		1,759
Securities sold, not yet purchased, at fair value	45,667		56,056
Due to brokers	306,927		44,870
Derivative liabilities	12,113		8,819
Performance fee payable to related party	21,837		—
Interest and dividends payable	589		748
Capital contribution received in advance	10,000		—
Non-controlling interest	20,302		69,717
Total liabilities and non-controlling interest	417,734		181,969
Total net investments managed by Third Point LLC	$	1,711,791	$	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 September 30, 2014 and December 31, 2013:



	September 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	$	929,946	$	18,721	$	—	$	948,667
Private common equity securities	—		7,937		—		7,937
Total equities	929,946		26,658		—		956,604
Asset-backed securities	—		425,160		2,434		427,594
Bank debts	—		17,584		—		17,584
Corporate bonds	—		103,092		3,964		107,056
Municipal bonds	—		3,623		—		3,623
Sovereign debt	—		104,801		19		104,820
Total debt securities	—		654,260		6,417		660,677
Investments in limited partnerships	—		66,799		6,770		73,569
Options	8,112		2,709		—		10,821
Rights and warrants	271		—		—		271
Trade claims	—		11,058		—		11,058
Catastrophe bond	—		2,046		—		2,046
Total other investments	8,383		82,612		6,770		97,765
Derivative assets (free standing)	170		37,090		—		37,260
Total assets	$	938,499	$	800,620	$	13,187	$	1,752,306
Liabilities
Equity securities	$	8,682	$	—	$	—	$	8,682
Sovereign debt	—		19,440		—		19,440
Corporate bonds	—		4,368		—		4,368
Options	8,096		5,081		—		13,177
Total securities sold, not yet purchased	16,778		28,889		—		45,667
Derivative liabilities (free standing)	121		11,992		233		12,346
Derivative liabilities (embedded)	—		—		7,913		7,913
Total liabilities	$	16,899	$	40,881	$	8,146	$	65,926



	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 nine months ended September 30, 2014 and 2013:



	January 1, 2014			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			September 30, 2014
	($ in thousands)
Assets
Private common equity securities	$	2,012		$	(2,300	)	$	—	$	—		$	288		$	—
Asset-backed securities	400			(2,151		)	4,093		(1,921		)	2,013			2,434
Corporate bonds	4,610			(811		)	821		(484		)	(172		)	3,964
Sovereign Debt	—			(11		)	30		—			—			19
Investments in limited partnerships	5,292			—			1,579		—			(101		)	6,770
Total assets	$	12,314		$	(5,273	)	$	6,523	$	(2,405	)	$	2,028		$	13,187
Liabilities
Derivative liabilities (free standing)	$	—		$	—		$	—	$	(1,013	)	$	780		$	(233	)
Derivative liabilities (embedded)	(4,430		)	—			—		(3,046		)	(437		)	(7,913		)
Total liabilities	$	(4,430	)	$	—		$	—	$	(4,059	)	$	343		$	(8,146	)

	July 1, 2014			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			September 30, 2014
	($ in thousands)
Assets
Private common equity securities	$	2,300		$	(2,300	)	$	—	$	—		$	—		$	—
Asset-backed securities	2,441			(520		)	288		(18		)	243			2,434
Corporate bonds	5,153			(811		)	—		(152		)	(226		)	3,964
Sovereign Debt	30			(11		)	—		—			—			19
Investment in limited partnership	5,771			—			1,525		—			(526		)	6,770
Total assets	$	15,695		$	(3,642	)	$	1,813	$	(170	)	$	(509	)	$	13,187
Liabilities
Derivative liabilities (free standing)	$	—		$	—		$	—	$	(1,013	)	$	780		$	(233	)
Derivative liabilities (embedded)	(5,538		)	—			—		(2,264		)	(111		)	(7,913		)
Total liabilities	$	(5,538	)	$	—		$	—	$	(3,277	)	$	669		$	(8,146	)



	January 1, 2013			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			September 30, 2013
	($ in thousands)
Assets
Private common equity securities	$	2,757		$	(1,905	)	$	2,032	$	(1,795	)	$	828		$	1,917
Asset-backed securities	—			196			196		—			(249		)	143
Bank debt	54			(54		)	—		—			—			—
Corporate bonds	1,046			(1,302		)	4,287		(1,311		)	1,795			4,515
Investment in limited partnership	—			—			1,959		(342		)	(71		)	1,546
Total assets	$	3,857		$	(3,065	)	$	8,474	$	(3,448	)	$	2,303		$	8,121
Liabilities
Derivative liabilities (free standing)	$	—		$	—		$	—	$	(4,335	)	$	3,167		$	(1,168	)
Derivative liabilities (embedded)	(2,510		)	—			—		(1,460		)	(310		)	(4,280		)
Total liabilities	$	(2,510	)	$	—		$	—	$	(5,795	)	$	2,857		$	(5,448	)

	July 1, 2013			Transfers in to (out of) Level 3			Purchases		Sales			Realized and Unrealized Gains(Losses) (1)			September 30, 2013
	($ in thousands)
Assets
Private common equity securities	$	3,473		$	(1,906	)	$	379	$	—		$	(29	)	$	1,917
Asset-backed securities	194			(112		)	47		—			14			143
Corporate bonds	4,304			—			303		(192		)	100			4,515
Investment in limited partnership	903			—			671		—			(28		)	1,546
Total assets	$	8,874		$	(2,018	)	$	1,400	$	(192	)	$	57		$	8,121
Liabilities
Derivative liabilities (free standing)	$	(2,240	)	$	—		$	—	$	(990	)	$	2,062		$	(1,168	)
Derivative liabilities (embedded)	(4,180		)	—			—		—			(100		)	(4,280		)
Total liabilities	$	(6,420	)	$	—		$	—	$	(990	)	$	1,962		$	(5,448	)

(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 (loss).