Significant Accounting Policies (Tables)

6 Months Ended

Jun. 30, 2014

Summary of Investments Values Based upon Level 1 and Level 2

The following table summarizes the values of the Company’s investments based upon Level 1 and Level 2 inputs as of June 30, 2014 and December 31, 2013:



	June 30, 2014		December 31, 2013
Level 1 Inputs	$	53,157,565	$	32,528,367
Level 2 Inputs	4,742,369		3,001,461

Assets under Management (AUM) Subject to Incentive Fees and Incentive Fees

The table below shows AUM subject to incentive fees and the incentive fees, as calculated under each of the above methods:



	As Of June 30,
	2014		2013
AUM Contractual Period Ends:
Quarter Ended June 30, 2017	$	402,429,364	$	331,253,656
Quarter Ended December 31, 2018	96,462,568		—
Total AUM Subject to Incentive Fees	$	498,891,932	$	331,253,656



	For the Three Months Ended				For the Six Months Ended
	Ended June 30,				Ended June 30,
	2014		2013		2014		2013
Incentive Fees Under Method 1:
Contractual Period Ends:
Quarter Ended June 30, 2017	$	—	$	—	$	—	$	—
Quarter Ended December 31, 2018	—		—		—		—
Total Incentive Fees Under Method 1	$	—	$	—	$	—	$	—
Incentive Fees Under Method 2:
Contractual Period Ends:
Quarter Ended June 30, 2017	$	3,614,204	$	2,464,815	$	3,614,204	$	2,464,815
Quarter Ended December 31, 2018	—		—		—		—
Total Incentive Fees Under Method 2	$	3,614,204	$	2,464,815	$	3,614,204	$	2,464,815

Mutual Fund Administration Gross and Net Revenue

Mutual fund administration gross and net revenue are summarized below:



	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
Mutual fund administration:
Administration revenue, gross	$	5,565,081		$	4,015,154		$	10,608,498		$	7,630,884
12b-1/service fees and commission revenue received from fund clients	2,689,494			1,984,681			5,171,264			3,797,068
12b-1/service fees and commission expense payments to third parties	(2,342,897		)	(1,738,197		)	(4,499,409		)	(3,327,009		)
Fund related expense	(2,419,569		)	(1,439,651		)	(4,508,744		)	(2,760,223		)
Revenue, net of fund related expenses	3,492,109			2,821,987			6,771,609			5,340,720
DHCM C-Share financing:
Broker commission advance repayments	218,108			64,674			391,999			121,332
Broker commission amortization	(210,100		)	(62,881		)	(385,202		)	(116,890		)
Financing activity, net	8,008			1,793			6,797			4,442
Mutual fund administration revenue, net	$	3,500,117		$	2,823,780		$	6,778,406		$	5,345,162