Investments

6 Months Ended

Jun. 30, 2011

3. Investments

The following table summarizes, by type, the carrying values of investments (in thousands):


	As of June 30,		As of December 31,
Type of Investment	2011		2010
Cash and cash equivalents	$	356,739	$	147,585
Debt securities		3,595		130,116
Equity securities		92,350		94,416
Non-hedge derivatives		739		182

Total Investments	$	453,423	$	372,299

The Company has made an assessment of its invested assets for fair value measurement as further described in Note 13 — Fair Value Measurements.

The Company is required by various state laws and regulations to keep certain cash and cash equivalents or securities on deposit in depository accounts with the states in which it does business. As of June 30, 2011 and December 31, 2010, amounts having a fair value of $6.2 million and $6.0 million, respectively, were on deposit. These laws and regulations govern not only the amount, but also the type of security that is eligible for deposit.

Major sources of net investment income, comprised primarily of interest and dividends, are summarized as follows (in thousands):


	For the Three Months Ended June 30,						For the Six Months Ended June 30,
	2011			2010			2011			2010
Cash and cash equivalents	$	35		$	33		$	50		$	51
Debt securities		67			246			468			546
Equity securities		34			10			60			20

Total investment income		136			289			578			617
Less investment expenses		(157	)		(171	)		(342	)		(306	)


Net investment income	$	(21	)	$	118		$	236		$	311

During the three-month period ended September 30, 2010, the Company evaluated the trading activity in its investment portfolio, its investing strategy, and its overall investment program. As a result of this evaluation, the Company reclassified its available-for-sale portfolio as a trading portfolio effective July 1, 2010.

Realized gains and losses for investment securities, net of other than temporary losses of $2.4 million recorded during the six months ended June 30, 2010, and non-hedge derivatives are summarized as follows (in thousands):


	For the Three Months Ended					For the Three Months Ended
	June 30, 2011					June 30, 2010
	Realized Gains			Proceeds (Fair		Realized Gains			Proceeds (Fair
	(Losses)			Value at Sale)		(Losses)			Value at Sale)
Debt securities	$	2,652		$	201,787	$	1,835		$	85,102
Equity securities		6,205			44,110		3,084			32,641
Non-hedge derivatives		379			228		—			—

Total		9,236			246,125		4,919			117,743


Debt securities		(2,129	)		48,738		(84	)		5,813
Equity securities		(3,523	)		22,498		(378	)		4,115
Non-hedge derivatives		(624	)		—		—			—

Total		(6,276	)		71,236		(462	)		9,928

Net	$	2,960		$	317,361	$	4,457		$	127,671


	For the Six Months Ended					For the Six Months Ended
	As of June 30, 2011					As of June 30, 2010
	Realized Gains			Proceeds (Fair		Realized Gains			Proceeds (Fair
	(Losses)			Value at Sale)		(Losses)			Value at Sale)
Debt securities	$	2,775		$	210,027	$	1,896		$	91,064
Equity securities		20,253			105,195		7,194			69,127
Non-hedge derivatives		379			228		—			—

Total		23,407			315,450		9,090			160,191


Debt securities		(6,392	)		113,738		(284	)		25,173
Equity securities		(9,386	)		28,254		(3,010	)		9,964
Non-hedge derivatives		(1,017	)		—		(52	)		—

Total		(16,795	)		141,992		(3,346	)		35,137

Net	$	6,612		$	457,442	$	5,744		$	195,328

All investment securities as of June 30, 2011 and December 31, 2010 were held by the Company for trading, with cost/amortized cost of $101.8 million and $222.5 million, respectively.

The following table summarizes the Company’s investment securities and non-hedge derivatives as of the periods presented (in thousands):


	As of June 30, 2011					As of December 31, 2010
	Fair Value		Percent of Total			Fair Value		Percent of Total
Debt Securities:
US government agency obligations	$	3,595		3.7	%	$	130,116		57.9	%
Equity Securities:
Common stock:
Metals and mining		33,537		34.7	%		25,752		11.5	%
Other		1,315		1.4	%		362		0.2	%
Exchange-traded and mutual funds:
Metals and mining		33,634		34.8	%		42,209		18.8	%
Agriculture		18,761		19.4	%		14,877		6.6	%
Energy		2,215		2.3	%		5,559		2.5	%
Indices		—		0.0	%		4,613		2.0	%
Other		2,888		3.0	%		1,044		0.5	%

Total equity securities		92,350		95.5	%		94,416		42.1	%

Non-hedge derivatives		739		0.8	%		182		0.0	%

Total	$	96,684		100.0	%	$	224,714		100.0	%

The Company recorded $9.6 million and $7.1 million of unrealized losses on trading securities in earnings during the three and six-month periods ended June 30, 2011. Prior to July 1, 2010, investment securities were classified as held-to-maturity or available-for-sale with an Other-Than-Temporary loss of $2.4 million reflected in earnings during the six-month period ended June 30, 2010.