Investment Portfolio (Notes)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

As of December 31, 2016, the Company held investments (excluding money market funds, which are included with cash and cash equivalents) worth $108.0 million. The following table summarizes the fair value of these investments as of December 31, 2016 and 2015:



	As of December 31,
	2016		2015
Trading investments:
Securities held in Consolidated Funds^(a)	$	57,355,471	$	—
Company sponsored investments^(b)	20,245		33,245,299
Company sponsored equity method investments	36,457,449		11,284,109
Deferred compensation plan investments	14,182,470		7,961,412
Total Investment portfolio	$	108,015,635	$	52,490,820

(a) Of the securities held in the Consolidated Funds as of December 31, 2016, $42.6 million were held directly by the Company and $14.7 million were held by noncontrolling shareholders.

(b) Upon the adoption of ASU 2015-02 on January 1, 2016, $21.1 million of investments classified as trading investments in 2015 were reclassified to equity method investments.

The deferred compensation investments above consist of Diamond Hill Funds and relate to deferred compensation liabilities from both deferred compensation plans (refer to Note 6). As of December 31, 2016, trading investments and equity method investments held in deferred compensation investments were $9.3 million and $4.9 million, respectively. As of December 31, 2015, all deferred compensation investments were trading investments.

As of December 31, 2016, our equity method investees consisted of the Diamond Hill Mid Cap Fund, the Diamond Hill Research Opportunities Fund, the Diamond Hill High Yield Fund and DHGF and our ownership percentages in these funds were 33%, 27%, 20%, and 95% respectively. The Company's equity method investments consist of cash, marketable equity securities and fixed income securities. The Company met the significant subsidiaries test for total equity method investments as of December 31, 2016 and is required to provide the summarized financial information for all equity method investments for all periods presented. The following table includes the condensed summary financial information from the Company's equity method investments as of and for the years ended December 31, 2016, 2015 and 2014:



	As of December 31,
	2016		2015			2014
Total assets	$	189,819,824	$	11,653,249		$	15,131,651
Total liabilities	45,931,979		25,996			3,015
Net assets	143,887,845		11,627,253			15,128,636
DHCM's portion of net assets	41,338,046		11,284,109			14,652,589

	For the Year Ended December 31,
	2016		2015			2014
Investment income	$	3,272,972	$	792,691		$	128,826
Expenses	1,409,896		5,506			5,362
Net realized gains (losses)	1,981,185		1,219,565			262,754
Net change in unrealized appreciation/depreciation	10,458,073		(1,879,047		)	137,935
Net income	14,302,334		127,703			524,153
DHCM's portion of net income	4,392,636		124,825			491,951

- Definition

The entire disclosure for investments in certain debt and equity securities.

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