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Investments

3 Months Ended

Mar. 31, 2012

3. Investments

The following table presents the Company’s investment holdings by type of instrument as of the periods presented (in thousands):


	As of March 31, 2012						As of December 31, 2011
	Cost or Amortized Cost		Fair Value		Carrying Value		Cost or Amortized Cost		Fair Value		Carrying Value
Cash equivalents (1)	$	325,968	$	325,968	$	325,968	$	229,685	$	229,685	$	229,685
Restricted cash and cash equivalents (1)		48,178		48,178		48,178		78,312		78,312		78,312
Trading portfolio:
Debt securities:
U.S. government securities obligations and agencies (2)		3,294		3,800		3,800		3,179		3,801		3,801
Equity securities:
Common stock:
Metals and mining		38,211		34,460		34,460		50,121		38,816		38,816
Energy		7,364		7,203		7,203		6,077		4,999		4,999
Other		2,235		2,145		2,145		8,044		6,945		6,945
Exchange-traded and mutual funds:
Metals and mining		15,197		15,174		15,174		28,311		25,997		25,997
Agriculture		20,609		19,811		19,811		17,781		16,878		16,878
Indices		21,373		18,203		18,203		2,006		1,710		1,710
Derivatives: (3)
Non-hedging instruments		147		60		60		357		123		123
Other investments (3) (4)		517		385		385		517		371		371

Total trading portfolio investments		108,947		101,241		101,241		116,393		99,640		99,640

Total investments	$	483,093	$	475,387	$	475,387	$	424,390	$	407,637	$	407,637

(1)	Cash equivalents include short-term debt securities consisting of direct obligations of the U.S. Treasury or money-market accounts that invest in direct obligations of the U.S. Treasury.

(2)

The Company is required by various state laws and regulations to maintain certain securities on deposit in depositary accounts with the states in which we do business. As of March 31, 2012 and December 31, 2011, securities having fair values of $3.8 million were on deposit. These laws and regulations govern not only the amount, but also the type of security that is eligible for deposit.

(3)	Derivatives and other investments are included in Other Assets in the Condensed Consolidated Balance Sheets.

(4)	Other investments represent physical metals held by the Company.

The Company has made an assessment of its invested assets for fair value measurement as further described in Note 12 – Fair Value Measurements.

The following table presents investment income comprised primarily of interest and dividends (in thousands):


	Three Months Ended March 31,
	2012			2011
Cash and cash equivalents (1)	$	179		$	14
Debt securities		13			401
Equity securities		56			26

Total investment income		248			441
Less investment expenses		(284	)		(184	)

Net investment (expense) income	$	(36	)	$	257

(1)	Includes interest earned on restricted cash and cash equivalents.

Trading Portfolio

The following table presents the effect of trading activities on the Company’s results of operations by type of instrument and by line item in the condensed consolidated statements of income (in thousands):


	Three Months Ended March 31,
	2012			2011
Realized gains (losses) on investments:
Debt securities	$	—		$	(4,140	)
Equity securities		(7,593	)		8,185
Derivatives (non-hedging instruments) (1)		144			(393	)

Total realized (losses) gains on trading portfolio		(7,449	)		3,652
Unrealized gains (losses) on investments:
Debt securities		37			5,519
Equity securities		8,989			(3,195	)
Derivatives (non-hedging instruments) (1)		147			264
Other		14			—

Total unrealized gains on trading portfolio		9,187			2,588

Net gains recognized on trading securities	$	1,738		$	6,240

(1)	This table represents the alternative quantitative disclosures permitted for derivatives that are not used as hedging instruments and are included in the trading portfolio.