Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 31, 2019 | |
Entity Information [Line Items] | ||
Entity Registrant Name | Associated Capital Group, Inc. | |
Entity Central Index Key | 0001642122 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Address, State or Province | CT | |
Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,466,245 | |
Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 19,022,918 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 350,934 | $ 409,564 |
Investments in securities | 245,063 | 179,011 |
Investment in GBL stock (3,016,501 shares) | 58,973 | 50,949 |
Investments in affiliated registered investment companies | 152,453 | 142,135 |
Investments in partnerships | 143,658 | 118,729 |
Receivable from brokers | 23,702 | 24,629 |
Investment advisory fees receivable | 1,287 | 4,394 |
Receivable from affiliates | 738 | 1,309 |
Deferred tax assets, net | 4,403 | 9,422 |
Goodwill and intangible assets | 3,519 | 3,519 |
Other assets | 8,395 | 10,772 |
Total assets | 993,125 | 954,433 |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | ||
Payable to brokers | 10,557 | 5,511 |
Income taxes payable | 3,888 | 3,577 |
Compensation payable | 11,594 | 11,388 |
Securities sold, not yet purchased | 25,475 | 9,574 |
Payable to affiliates | 472 | 515 |
Accrued expenses and other liabilities | 2,643 | 7,820 |
Total liabilities | 54,629 | 38,385 |
Redeemable noncontrolling interests | 49,699 | 49,800 |
Equity: | ||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued and outstanding | 0 | 0 |
Additional paid-in capital | 1,006,065 | 1,008,319 |
Accumulated deficit | (11,723) | (39,889) |
Treasury stock, at cost (3,095,899 and 3,007,016 shares, respectively) | (105,570) | (102,207) |
Total Associated Capital Group, Inc. stockholders' equity | 888,797 | 866,248 |
Total liabilities and equity | 993,125 | 954,433 |
Class A [Member] | ||
Equity: | ||
Common stock | 6 | 6 |
Class B [Member] | ||
Equity: | ||
Common stock | $ 19 | $ 19 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
ASSETS | ||
Investment in GBL stock, shares (in shares) | 3,016,501 | 3,016,501 |
Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 22,500,000 | 22,600,000 |
Treasury stock, shares (in shares) | 3,095,899 | 3,007,016 |
Class A [Member] | ||
Equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 6,569,254 | 6,537,768 |
Common stock, shares outstanding (in shares) | 3,473,355 | 3,530,752 |
Class B [Member] | ||
Equity: | ||
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 19,196,792 | 19,196,792 |
Common stock, shares outstanding (in shares) | 19,022,918 | 19,054,404 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues | ||||
Total revenues | $ 5,118 | $ 4,666 | $ 14,591 | $ 14,165 |
Expenses | ||||
Compensation | 4,808 | 5,618 | 16,288 | 17,812 |
Stock-based compensation | 256 | 289 | 955 | 361 |
Other operating expenses | 3,063 | 2,258 | 11,384 | 7,187 |
Total expenses | 8,127 | 8,165 | 28,627 | 25,360 |
Operating loss | (3,009) | (3,499) | (14,036) | (11,195) |
Other income (expense) | ||||
Net gain/(loss) from investments | 7,606 | (7,977) | 42,351 | (18,936) |
Interest and dividend income | 2,618 | 3,466 | 9,699 | 9,338 |
Interest expense | (69) | (70) | (148) | (142) |
Total other income (expense), net | 10,155 | (4,581) | 51,902 | (9,740) |
Income/(loss) before income taxes | 7,146 | (8,080) | 37,866 | (20,935) |
Income tax expense/(benefit) | 1,554 | (858) | 7,468 | (4,204) |
Net income/(loss) | 5,592 | (7,222) | 30,398 | (16,731) |
Net income/(loss) attributable to noncontrolling interests | (359) | 157 | 2,232 | 1,053 |
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ 5,951 | $ (7,379) | $ 28,166 | $ (17,784) |
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share: | ||||
Basic (in dollars per share) | $ 0.26 | $ (0.32) | $ 1.25 | $ (0.77) |
Diluted (in dollars per share) | $ 0.26 | $ (0.32) | $ 1.25 | $ (0.77) |
Weighted average shares outstanding: | ||||
Basic (in shares) | 22,514 | 22,979 | 22,550 | 23,187 |
Diluted (in shares) | 22,514 | 22,979 | 22,550 | 23,187 |
Investment Advisory and Incentive Fees [Member] | ||||
Revenues | ||||
Total revenues | $ 2,753 | $ 2,805 | $ 8,199 | $ 7,949 |
Institutional Research Services [Member] | ||||
Revenues | ||||
Total revenues | 2,354 | 1,855 | 6,343 | 6,179 |
Other [Member] | ||||
Revenues | ||||
Total revenues | $ 11 | $ 6 | $ 49 | $ 37 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED [Abstract] | ||||
Net income/(loss) | $ 5,592 | $ (7,222) | $ 30,398 | $ (16,731) |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | (359) | 157 | 2,232 | 1,053 |
Comprehensive income/(loss) attributable to Associated Capital Group, Inc. | $ 5,951 | $ (7,379) | $ 28,166 | $ (17,784) |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED - USD ($) $ in Thousands | Common Stock [Member] | Retained Earnings/(Accumulated Deficit) [Member] | Additional Paid-in Capital [Member] | GBL 4% PIK Note [Member] | Accumulated Comprehensive Income [Member] | Treasury Stock [Member] | Total | Redeemable Noncontrolling Interests [Member] |
Balance at Dec. 31, 2017 | $ 25 | $ 13,800 | $ 1,010,505 | $ (50,000) | $ 6,712 | $ (62,895) | $ 918,147 | $ 46,230 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Reclassifications pursuant to adoption of new accounting guidance | 0 | 6,712 | 0 | 0 | (6,712) | 0 | 0 | 0 |
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (1,971) |
Consolidation of certain investment funds | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6,488 |
Net income/(loss) | 0 | (22,229) | 0 | 0 | 0 | 0 | (22,229) | (143) |
Stock-based compensation expense | 0 | 0 | 72 | 0 | 0 | 0 | 72 | 0 |
Proceeds from payment of GBL 4% Note | 0 | 0 | 0 | 10,000 | 0 | 0 | 10,000 | 0 |
Exchange of GBL stock for AC stock | 0 | 0 | 0 | 0 | 0 | (17,737) | (17,737) | 0 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | (459) | (459) | 0 |
Balance at Mar. 31, 2018 | 25 | (1,717) | 1,010,577 | (40,000) | 0 | (81,091) | 887,794 | 50,604 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (336) |
Net income/(loss) | 0 | 11,824 | 0 | 0 | 0 | 0 | 11,824 | 1,039 |
Proceeds from payment of GBL 4% Note | 0 | 0 | 0 | 20,000 | 0 | 0 | 20,000 | 0 |
Dividends declared | (2,302) | (2,302) | 0 | |||||
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | (5,380) | (5,380) | 0 |
Balance at Jun. 30, 2018 | 25 | 7,805 | 1,010,577 | (20,000) | 0 | (86,471) | 911,936 | 51,307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | 0 | (345) |
Net income/(loss) | 0 | (7,379) | 0 | 0 | 0 | 0 | (7,379) | 157 |
Proceeds from payment of GBL 4% Note | 0 | 0 | 0 | 20,000 | 0 | 0 | 20,000 | 0 |
Purchase of treasury stock | 0 | 0 | 0 | 0 | 0 | (732) | (732) | 0 |
Balance at Sep. 30, 2018 | 25 | 426 | 1,010,577 | $ 0 | $ 0 | (87,203) | 923,825 | 51,119 |
Balance at Dec. 31, 2018 | 25 | (39,889) | 1,008,319 | (102,207) | 866,248 | 49,800 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | (526) | ||
Net income/(loss) | 0 | 23,147 | 0 | 0 | 23,147 | 1,507 | ||
Purchase of treasury stock | 0 | 0 | 0 | (391) | (391) | 0 | ||
Balance at Mar. 31, 2019 | 25 | (16,742) | 1,008,319 | (102,598) | 889,004 | 50,781 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | (2,197) | ||
Net income/(loss) | 0 | (932) | 0 | 0 | (932) | 1,084 | ||
Dividends declared | 0 | 0 | (2,254) | 0 | (2,254) | 0 | ||
Purchase of treasury stock | 0 | 0 | 0 | (1,630) | (1,630) | 0 | ||
Balance at Jun. 30, 2019 | 25 | (17,674) | 1,006,065 | (104,228) | 884,188 | 49,668 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 390 | ||
Net income/(loss) | 0 | 5,951 | 0 | 0 | 5,951 | (359) | ||
Purchase of treasury stock | 0 | 0 | 0 | (1,342) | (1,342) | 0 | ||
Balance at Sep. 30, 2019 | $ 25 | $ (11,723) | $ 1,006,065 | $ (105,570) | $ 888,797 | $ 49,699 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF EQUITY UNAUDITED (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Dividends declared (in dollars per share) | $ 0.10 | $ 0.10 | ||
GBL 4% PIK Note [Member] | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Debt instrument, interest rate | 4.00% | 4.00% | 4.00% |
CONDENSED CONSOLIDATED STATEM_7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Operating activities | ||
Net income/(loss) | $ 30,398 | $ (16,731) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Equity in net gains from partnerships | (5,029) | (3,697) |
Deferred income taxes | 5,019 | 0 |
Depreciation and amortization | 18 | 15 |
Stock-based compensation expense | 0 | 72 |
Loss on exchange offer | 0 | 2,127 |
Donated securities | 1,875 | 0 |
Unrealized gains on securities | (18,450) | 0 |
Realized gains on sales of securities | (220) | 0 |
(Increase) decrease in assets: | ||
Investments in trading securities | (54,357) | 1,983 |
Investments in partnerships: | ||
Contributions to partnerships | (22,671) | (8,077) |
Distributions from partnerships | 2,772 | 9,512 |
Receivable from affiliates | 571 | 451 |
Goodwill and intangible assets | 0 | (97) |
Receivable from brokers | 927 | 19,706 |
Investment advisory fees receivable | 3,107 | 4,372 |
Other assets | 8,609 | 5,983 |
Increase (decrease) in liabilities: | ||
Payable to brokers | 5,046 | 44 |
Income taxes payable and deferred tax liabilities | 311 | (4,656) |
Payable to affiliates | (43) | 161 |
Compensation payable | 206 | (5,994) |
Accrued expenses and other liabilities | (2,917) | (557) |
Total adjustments | (75,226) | 21,348 |
Net cash provided by (used in) operating activities | (44,828) | 4,617 |
Investing activities | ||
Purchases of securities | (1,366) | 0 |
Proceeds from sale of securities | 2,699 | 0 |
Return of capital on securities | 1,326 | 0 |
Purchase of building | (6,250) | 0 |
Proceeds from note receivable | 0 | 15,000 |
Net cash provided by (used in) investing activities | (3,591) | 15,000 |
Financing activities | ||
Redemptions of redeemable noncontrolling interests | (2,333) | (2,652) |
Dividends paid | (4,513) | (4,666) |
Purchase of treasury stock | (3,363) | (6,571) |
Proceeds from payment of GBL 4% PIK Note | 0 | 50,000 |
Proceeds from promissory note from Executive Chairman | 2,124 | 0 |
Repayment of promissory note to Executive Chairman | (2,126) | 0 |
Net cash provided by (used in) financing activities | (10,211) | 36,111 |
Net increase (decrease) in cash and cash equivalents | (58,630) | 55,728 |
Cash, restricted cash and cash equivalents at beginning of period | 409,764 | 293,112 |
Increase in cash from consolidation | 0 | 47 |
Cash, restricted cash and cash equivalents at end of period | 351,134 | 348,887 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 136 | 141 |
Cash paid for taxes | 2,200 | 304 |
Reconciliation to cash, restricted cash and cash equivalents | ||
Cash and cash equivalents | 350,934 | 348,887 |
Restricted cash included in receivable from brokers | 200 | 200 |
Cash, restricted cash and cash equivalents at end of period | $ 351,134 | $ 348,887 |
CONDENSED CONSOLIDATED STATEM_8
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED (Parenthetical) - USD ($) $ in Thousands | Jan. 01, 2018 | Mar. 31, 2018 |
Non-cash activity: | ||
Increase in cash and cash equivalent from consolidation | $ 47 | |
Increase in other net assets from consolidation | 6,441 | |
Increase in redeemable noncontrolling interest from consolidation | $ 6,488 | |
Class A Common Stock [Member] | ||
Non-cash activity: | ||
Number of AC shares exchanged (in shares) | 493,954 | |
GBL [Member] | Class A Common Stock [Member] | ||
Non-cash activity: | ||
Number of GAMCO shares issued (in shares) | 666,805 | |
Value of shares issued | $ 17,737 |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Basis of Presentation and Significant Accounting Policies | A. Basis of Presentation and Significant Accounting Policies Unless we have indicated otherwise, or the context otherwise requires, references in this report to “Associated Capital Group, Inc.,” “AC Group,” “the Company,” “AC,” “we,” “us” and “our” or similar terms are to Associated Capital Group, Inc., its predecessors and its subsidiaries. The Spin-off and Related Transactions We are a Delaware corporation that provides alternative investment management, institutional research and underwriting services. In addition, we derive investment income/(loss) from proprietary trading of cash and other assets awaiting deployment in our operating business. On November 30, 2015, GAMCO Investors, Inc. (“GAMCO” or “GBL”) distributed all the outstanding shares of each class of AC common stock on a pro rata one-for-one basis to the holders of each class of GAMCO’s common stock (the “Spin-off”). We conduct our investment management activities through our wholly-owned subsidiary Gabelli & Company Investment Advisers, Inc. (“GCIA” f/k/a Gabelli Securities, Inc.). GCIA and its wholly-owned subsidiary, Gabelli & Partners, LLC (“Gabelli & Partners”), collectively serve as general partners or investment managers to investment funds including limited partnerships and offshore companies (collectively, “Investment Partnerships”), and separate accounts. We primarily manage assets in equity event-driven value strategies, across a range of risk and event arbitrage portfolios. The business earns management and incentive fees from its advisory activities. Management fees are largely based on a percentage of assets under management. Incentive fees are based on the percentage of the investment returns of certain clients’ portfolios. GCIA is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended. We provide our institutional research and underwriting services through G.research, LLC (“G.research”), an indirect wholly-owned subsidiary of the Company. G.research is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and is regulated by the Financial Industry Regulatory Authority (“FINRA”). G.research’s revenues are derived primarily from institutional research services. We may make direct investments in operating businesses using a variety of techniques and structures. For example, in April 2018, the Company sponsored a €110 million initial public offering of its first special purpose acquisition corporation, the Gabelli Value for Italy S.p.a., an Italian company listed on the London Stock Exchange’s Borsa Italiana AIM segment under the symbol “VALU”. VALU was created to acquire a small- to medium-sized Italian franchise business with the potential for international expansion, particularly in the United States. In connection with the Spin-off, GAMCO issued a promissory note (the “GAMCO Note”) to AC Group in the original principal amount of $250 million used to partially capitalize the Company. During the year ended December 31, 2018, AC received principal repayments totaling $50 million on the GAMCO Note which fully satisfied the outstanding principal balance. The GAMCO Note bore interest at 4% per annum and had an original maturity date of November 30, 2020. In addition, GCIA acquired 4,393,055 shares of GAMCO Class A common stock for $150 million in connection with the Spin-off. Basis of Presentation The unaudited interim condensed consolidated financial statements of AC Group included herein have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP in the United States for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of the Company for the interim periods presented and are not necessarily indicative of a full year’s results. The interim condensed consolidated financial statements include the accounts of AC Group and its subsidiaries. All material intercompany transactions and balances have been eliminated. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported on the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Recent Accounting Developments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amends the guidance in GAAP for the accounting for leases. ASU 2016-02 requires a lessee to recognize assets and liabilities arising from most operating leases in the condensed consolidated statement of financial position. The new standard was effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. The Company adopted this ASU effective January 1, 2019 with no material impact on its condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU adds certain disclosure requirements and modifies or eliminates requirements under current GAAP. This ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company has early adopted the eliminated and modified disclosure requirements and is currently evaluating this guidance as it relates to the new disclosure requirements. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2019 | |
Revenue [Abstract] | |
Revenue | B. Revenue The Company’s revenue is accounted for as contracts with customers, and the timing of revenue recognition is based on the Company’s analysis of the provisions of each respective contract. Depending upon the specific terms, revenue may be recognized over time or at a point in time. Modifications to contracts may affect the timing of the satisfaction of performance obligations, the determination of the transaction price, and the allocation of the price to performance obligations, any of which may impact the timing of the recognition of the related revenue. The Company’s major revenue sources are as follows: Investment advisory and incentive fees. a. Asset-based advisory fees – The Company receives a management fee, payable monthly in advance based on value of the net assets of the client. It is generally set at a rate of 1%-1.5% per annum. Asset-based management fee revenue is recognized only as the services are performed over the period. b. Performance-based advisory fees – Certain client contracts call for additional fees and or allocations of income tied to a certain percentage, generally 20%, of the investment performance of the account over a measurement period, typically the calendar year. In addition, the contracts provide that performance-based fees or allocations become fixed in the event of an investor redemption prior to the end of the measurement period. In the event that an account suffers a loss in one period, it must be recovered before incentive fees are earned by the Company; this is commonly referred to as a “high water mark” provision. While the Company’s performance obligation is satisfied over time, the Company does not recognize performance-based fees until the end of the measurement period or the time of the investor redemption when the uncertainty surrounding the amount of the variable consideration is resolved. c. Sub-advisory fees – Pursuant to agreements with other investment advisors, the Company receives a percentage of advisory fees received by such advisors from certain of their investment fund clients. These fees may be either asset- or performance-based. In addition, they may be subject to reduction by certain expenses as set forth in the respective agreements. Sub-advisory fee revenue which is asset-based is recognized ratably as the services are performed over the relevant contractual performance period. Sub-advisory fee revenue which is performance-based is recognized only when it becomes fixed and not subject to adjustment. The Company reserves the right to waive or reduce asset-based and performance-based fees with respect to certain investors in the investment funds which may include investments by employees and other related parties. Advisory and incentive fees payable by investment funds are typically approved by third-party administrators and paid directly from the accounts’ assets. Such fees attributable to separate accounts may be subject to review and approval by the client and may be paid either from the accounts’ assets or directly by the client. Our advisory fee revenues are influenced by both the amount of assets under management (“AUM”) and the investment performance of our products. An overall decline in the prices of securities may cause our advisory fees to decline by either causing the value of our AUM to decrease or causing our clients to withdraw funds in favor of investments they perceive to offer greater opportunity or lower risk. Similarly, success in the investment management business is dependent on investment performance as well as distribution and client servicing. Good performance can stimulate sales of our investment products and tends to keep withdrawals and redemptions low, which generates higher asset-based management fees. Conversely, poor performance, both in absolute terms and/or relative to peers and industry benchmarks, tends to result in decreased sales, increased withdrawals and redemptions and in the loss of clients, with corresponding decreases in revenues to us. Institutional Research Services. a. Hard dollar payments – The Company receives direct payments for research services provided to related and unrelated parties. The Company may or may not have contracts for such services. Where a contract for such services is in place, the contractual fee for the period is recognized ratably over the contract period, typically a calendar year, which is considered the period over which the Company satisfies its performance obligation. Payments for contracts with affiliated parties are collected monthly. For other payments where no research contract exists, revenue is not recognized until agreement is reached with the client that the Company has satisfied its performance obligation. At that time, a value is assigned to those services and an invoice is presented to the client for payment. b. Commissions – Commissions are charged on the execution of securities transactions made on behalf of client accounts on an agency basis and are based on a rate schedule. The Company meets its performance obligations and recognizes commission revenue when the related securities transactions are executed and the security is transferred to or from the customer. Commissions earned are typically collected from the clearing brokers utilized by G.research on a daily or weekly basis. c. Selling concessions – The Company participates as a member of the selling group of underwritten equity offerings and receives compensation based on the difference between what its clients pay for the securities sold to its institutional clients and what the issuer receives. The terms of the selling concessions are set forth in contracts between the Company and the underwriter. The Company meets its performance obligations and recognizes selling commissions upon the sale of the related securities to its clients. d. Sales manager fees – The Company participates as sales manager of at-the-market offerings of certain affiliated closed-end funds and receives a tiered percentage of proceeds as stipulated in agreements between the Company, the funds and the funds’ investment adviser and as approved by the funds’ board of directors. The Company meets its performance obligations and recognizes sales manager fees upon sale of the related closed-end funds. Sales manager fees earned are typically collected from the clearing brokers utilized by G.research on a daily or weekly basis. Institutional research revenues are impacted by the perceived value of the research product provided to clients, the volume of securities transactions and the acquisition or loss of new client relationships. Other. Total revenues by type were as follows for the three and six ended September 30, 2019 and 2018, respectively (in thousands): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Investment advisory and incentive fees Asset-based advisory fees $ 1,723 $ 1,879 $ 5,208 $ 5,561 Performance-based advisory fees 35 27 61 34 Sub-advisory fees 995 899 2,930 2,354 2,753 2,805 8,199 7,949 Institutional research services Hard dollar payments 520 541 1,470 2,236 Commissions 1,365 1,284 4,207 3,844 Selling concessions - 15 75 84 Sales manager fees 469 15 591 15 2,354 1,855 6,343 6,179 Other Underwriting fees 5 - 24 19 Miscellaneous 6 6 25 18 11 6 49 37 Total $ 5,118 $ 4,666 $ 14,591 $ 14,165 |
Investment in Securities
Investment in Securities | 9 Months Ended |
Sep. 30, 2019 | |
Investment in Securities [Abstract] | |
Investment in Securities | C. Investment in Securities Investments in United States Treasury Bills and Notes with maturities of greater than three months at the time of purchase are classified as investments in securities, and those with maturities of three months or less at the time of purchase are classified as cash equivalents. Investments in securities are stated at fair value, with any unrealized gains or losses reported in current period earnings. Investments in securities, including GBL stock, at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Government obligations $ 28,842 $ 29,335 $ 11,694 $ 11,707 Common stocks 289,127 268,951 244,557 213,151 Mutual funds 659 1,137 761 1,161 Other investments 5,776 4,613 5,285 3,941 Total investments in securities $ 324,404 $ 304,036 $ 262,297 $ 229,960 Securities sold, not yet purchased at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Proceeds Fair Value Proceeds Fair Value Common stocks $ 24,894 $ 25,402 $ 10,150 $ 9,485 Other investments - 73 - 89 Total securities sold, not yet purchased $ 24,894 $ 25,475 $ 10,150 $ 9,574 Investments in affiliated registered investment companies at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Closed-end funds $ 73,938 $ 95,017 $ 73,950 $ 85,090 Mutual funds 47,390 57,436 49,714 57,045 Total investments in affiliated registered investment companies $ 121,328 $ 152,453 $ 123,664 $ 142,135 The Company recognizes all equity derivatives as either assets or liabilities measured at fair value and includes them in either investments in securities or securities sold, not yet purchased on the condensed consolidated statements of financial condition. From time to time, the Company and/or the partnerships and offshore funds that the Company consolidates will enter into hedging transactions to manage their exposure to foreign currencies and equity prices related to their investments. The following table identifies the fair values of all derivatives held by the Company (in thousands): Asset Derivatives Liability Derivatives Statement of Financial Condition Location Fair Value Statement of Financial Condition Location Fair Value September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Derivatives designated as hedging instruments under FASB ASC 815-20 Foreign exchange contracts Receivable from brokers $ 79 $ 204 Payable to brokers $ - $ - Sub total $ 79 $ 204 $ - $ - Derivatives not designated as hedging instruments under FASB ASC 815-20 Equity contracts Investments in securities $ 77 $ 464 Securities sold, not yet purchased $ 73 $ 89 Sub total $ 77 $ 464 $ 73 $ 89 Total derivatives $ 156 $ 668 $ 73 $ 89 The following table identifies gains and losses of all derivatives held by the Company (in thousands): Type of Derivative Income Statement Location Three Months ended September 30, Nine Months ended September 30, 2019 2018 2019 2018 Foreign exchange contracts Net gain/(loss) from investments $ 124 $ 36 $ 177 $ 138 Equity contracts Net gain/(loss) from investments 1,143 652 (324 ) 3,304 Total $ 1,267 $ 688 $ (147 ) $ 3,442 At September 30, 2019 and December 31, 2018, we held derivative contracts on 2.5 million and 1.0 million equity shares, respectively, that are included in investments in securities or securities sold, not yet purchased on the condensed consolidated statements of financial condition. Except for the foreign exchange contract entered into by the Company, these transactions are not designated as hedges for accounting purposes, and changes in fair values of these derivatives are included in net gain/(loss) from investments on the condensed consolidated statements of income. The Company is a party to enforceable master netting arrangements for equity swaps entered into with major U.S. financial institutions as part of the investment strategy of the Company’s proprietary portfolio. They are typically not used as hedging instruments. These swaps, while settled on a net basis with the counterparties, are shown gross in assets and liabilities on the condensed consolidated statements of financial condition. The swaps have a firm contract end date and are closed out and settled when each contract expires. Gross Amounts of Recognized Assets Gross Amounts Offset in the Statements of Financial Condition Net Amounts of Assets Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Financial Instruments Cash Collateral Received Net Amount Swaps: (In thousands) September 30, 2019 $ 77 $ - $ 77 $ (73 ) $ - $ 4 December 31, 2018 416 - 416 (89 ) - 327 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Financial Condition Net Amounts of Liabilities Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Statements of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount Swaps: (In thousands) September 30, 2019 $ 73 $ - $ 73 $ (73 ) $ - $ - December 31, 2018 89 - 89 (89 ) - - |
Investment Partnerships and Var
Investment Partnerships and Variable Interest Entities | 9 Months Ended |
Sep. 30, 2019 | |
Investment Partnerships and Variable Interest Entities [Abstract] | |
Investment Partnerships and Variable Interest Entities | D. Investment Partnerships and Variable Interest Entities The Company is general partner or co-general partner of various affiliated entities (“Affiliated Entities”) in which the Company had investments totaling $124.7 million and $100.1 million at September 30, 2019 and December 31, 2018, respectively, and whose underlying assets consist primarily of marketable securities. We also had investments in unaffiliated partnerships, offshore funds and other entities (“Unaffiliated Entities”) of $19.0 million and $18.6 million at September 30, 2019 and December 31, 2018, respectively. We evaluate each entity to determine its appropriate accounting treatment and disclosure. For any entity where the Company has determined that it holds a variable interest, the Company performs an assessment to determine whether it qualifies as a variable interest entity (“VIE”). Entities that do not qualify as VIEs are assessed for consolidation as voting interest entities (“VOEs”) under the voting interest model.Certain of the Affiliated Entities, and none of the Unaffiliated Entities, are consolidated. The value of entities where consolidation is not deemed appropriate is included in investments in partnerships on condensed consolidated statements of financial condition. This caption includes investments in Affiliated Entities and Unaffiliated Entities which the Company accounts for under the equity method of accounting. The Company reflects the equity in earnings of these Affiliated Entities and Unaffiliated Entities as net gain/(loss) from investments on the condensed consolidated statements of income. The following table highlights the number of entities that we consolidate as well as the basis under which they are consolidated: VIEs VOEs Entities consolidated at December 31, 2017 1 3 Additional consolidated entities - 2 Deconsolidated entities - - Entities consolidated at September 30, 2018 1 5 Additional consolidated entities - - Deconsolidated entities - - Entities consolidated at December 31, 2018 1 5 Additional consolidated entities - - Deconsolidated entities - - Entities consolidated at September 30, 2019 1 5 The following table includes the net impact by line item on the condensed consolidated statements of financial condition for the consolidated entities (in thousands): September 30, 2019 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents 346,501 $ 4,433 $ 350,934 Investments in securities (including GBL stock) 167,129 136,907 304,036 Investments in affiliated investment companies 212,576 (60,123 ) 152,453 Investments in partnerships 165,088 (21,430 ) 143,658 Receivable from brokers 8,364 15,338 23,702 Investment advisory fees receivable 1,308 (21 ) 1,287 Other assets 17,017 38 17,055 Total assets $ 917,983 $ 75,142 $ 993,125 Liabilities and equity Securities sold, not yet purchased $ 7,538 $ 17,937 $ 25,475 Accrued expenses and other liabilities 21,648 7,506 29,154 Redeemable noncontrolling interests - 49,699 49,699 Total equity 888,797 - 888,797 Total liabilities and equity $ 917,983 $ 75,142 $ 993,125 December 31, 2018 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents $ 396,074 $ 13,490 $ 409,564 Investments in securities (including GBL stock) 131,764 98,196 229,960 Investments in affiliated investment companies 193,006 (50,871 ) 142,135 Investments in partnerships 138,119 (19,390 ) 118,729 Receivable from brokers 7,998 16,631 24,629 Investment advisory fees receivable 4,427 (33 ) 4,394 Other assets 24,551 471 25,022 Total assets $ 895,939 $ 58,494 $ 954,433 Liabilities and equity Securities sold, not yet purchased $ 4,631 $ 4,943 $ 9,574 Accrued expenses and other liabilities 25,060 3,751 28,811 Redeemable noncontrolling interests - 49,800 49,800 Total equity 866,248 - 866,248 Total liabilities and equity $ 895,939 $ 58,494 $ 954,433 The following table includes the net impact by line item on the condensed consolidated statements of income for the consolidated entities (in thousands): Three Months Ended September 30, 2019 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 5,299 $ (181 ) $ 5,118 Total expenses 8,251 (124 ) 8,127 Operating loss (2,952 ) (57 ) (3,009 ) Total other income/(expense), net 10,457 (302 ) 10,155 Income/(loss) before income taxes 7,505 (359 ) 7,146 Income tax expense 1,554 - 1,554 Net income/(loss) before NCI 5,951 (359 ) 5,592 Net loss attributable to noncontrolling interests - (359 ) (359 ) Net income $ 5,951 $ - $ 5,951 Three Months Ended September 30, 2018 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 4,683 $ (17 ) $ 4,666 Total expenses 7,698 467 8,165 Operating loss (3,015 ) (484 ) (3,499 ) Total other income/(expense), net (5,222 ) 641 (4,581 ) Income/(loss) before income taxes (8,237 ) 157 (8,080 ) Income tax benefit (858 ) - (858 ) Net income/(loss) before NCI (7,379 ) 157 (7,222 ) Net income attributable to noncontrolling interests - 157 157 Net loss $ (7,379 ) $ - $ (7,379 ) Nine Months Ended September 30, 2019 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 15,117 $ (526 ) $ 14,591 Total expenses 27,370 1,257 28,627 Operating loss (12,253 ) (1,783 ) (14,036 ) Total other income, net 47,887 4,015 51,902 Income before income taxes 35,634 2,232 37,866 Income tax expense 7,468 - 7,468 Net income before NCI 28,166 2,232 30,398 Net income attributable to noncontrolling interests - 2,232 2,232 Net income $ 28,166 $ - $ 28,166 Nine Months Ended September 30, 2018 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 14,215 $ (50 ) $ 14,165 Total expenses 23,913 1,447 25,360 Operating loss (9,698 ) (1,497 ) (11,195 ) Total other income/(expense), net (12,290 ) 2,550 (9,740 ) Income/(loss) before income taxes (21,988 ) 1,053 (20,935 ) Income tax benefit (4,204 ) - (4,204 ) Net income/(loss) before NCI (17,784 ) 1,053 (16,731 ) Net income attributable to noncontrolling interests - 1,053 1,053 Net loss $ (17,784 ) $ - $ (17,784 ) Variable Interest Entities With respect to the consolidated VIE, its assets may only be used to satisfy its obligations. The investors and creditors of any consolidated VIE have no recourse to the Company’s general assets. In addition, the Company neither benefits from such VIE’s assets nor bears the related risk beyond its beneficial interest in the VIE. The following table presents the balances related to the VIE that is consolidated and included on the condensed consolidated statements of financial condition as well as the Company’s net interest in this VIE (in thousands): September 30, 2019 December 31, 2018 Cash and cash equivalents $ 1,986 $ 2,560 Investments in securities 9,255 7,253 Receivable from brokers 473 553 Other assets - (11 ) Accrued expenses and other liabilities (41 ) (31 ) Redeemable noncontrolling interests (447 ) (419 ) AC Group’s net interests in consolidated VIE $ 11,226 $ 9,905 |
Fair Value
Fair Value | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value [Abstract] | |
Fair Value | E. Fair Value The following tables present information about the Company’s assets and liabilities by major category measured at fair value on a recurring basis as of September 30, 2019 and December 31, 2018 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. Investments in certain entities that calculate net asset value per share and other investments that are not held at fair value are provided as separate items to permit reconciliation of the fair value of investments included in the fair value hierarchy to the total amounts presented in the condensed consolidated statements of financial condition. The following tables present assets and liabilities measured at fair value on a recurring basis as of the dates specified (except for Investment Partnerships) (in thousands): September 30, 2019 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Using NAV as Fair Value (a) Other Assets Not Held at Fair Value (b) Total Cash equivalents $ 349,848 $ - $ - $ - $ - $ 349,848 Investments in partnerships - - - 139,401 4,257 143,658 Investments in securities (including GBL stock): Gov’t obligations 29,335 - - 29,335 Common stocks 268,361 501 89 - - 268,951 Mutual funds 1,137 - - - - 1,137 Other 316 88 4,209 - - 4,613 Total investments in securities 299,149 589 4,298 - - 304,036 Investments in affiliated registered investment companies: Closed-end funds 95,017 - - - - 95,017 Mutual funds 57,436 - - - - 57,436 Total investments in affiliated registered investment companies 152,453 - - - - 152,453 Total investments 451,602 589 4,298 139,401 4,257 600,147 Total assets at fair value $ 801,450 $ 589 $ 4,298 $ 139,401 $ 4,257 $ 949,995 Liabilities Common stocks $ 25,402 $ - $ - $ - $ - $ 25,402 Other - 73 - - - 73 Securities sold, not yet purchased $ 25,402 $ 73 $ - $ - $ - $ 25,475 December 31, 2018 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Using NAV as Fair Value (a) Other Assets Not Held at Fair Value (b) Total Cash equivalents $ 407,239 $ - $ - $ - $ - $ 407,239 Investments in partnerships - - - 114,449 4,280 118,729 Investments in securities (including GBL stock): Gov’t obligations 11,707 - - - - 11,707 Common stocks 205,978 7,161 12 - - 213,151 Mutual funds 1,161 - - - - 1,161 Other 19 464 3,458 - - 3,941 Total investments in securities 218,865 7,625 3,470 - - 229,960 Investments in affiliated registered investment companies: Closed-end funds 85,090 - - - - 85,090 Mutual funds 57,045 - - - - 57,045 Total investments in affiliated registered investment companies 142,135 - - - - 142,135 Total investments 361,000 7,625 3,470 114,449 4,280 490,824 Total assets at fair value $ 768,239 $ 7,625 $ 3,470 $ 114,449 $ 4,280 $ 898,063 Liabilities Common stocks $ 9,485 $ - $ - $ - $ - $ 9,485 Other - 89 - - - 89 Securities sold, not yet purchased $ 9,485 $ 89 $ - $ - $ - $ 9,574 (a) Amounts include certain equity method investments in Investment Partnerships which qualify for investment company specialized accounting. These Investment Partnerships account for their financial assets and liabilities using fair value measures and, therefore, the Company’s investment approximates fair value. At September 30, 2019 and December 31, 2018, investments in these Investment Partnerships were $131,082 and $105,020, respectively. In addition, certain investments in Investment Partnerships were held by a consolidated entity. At September 30, 2019 and December 31, 2018, these amounts were $8,319 and $9,429, respectively. None of these investments have been classified in the fair value hierarchy. (b) Amounts include certain equity method investments which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value. Investments using NAV as fair value shown in the above tables include investments in Affiliated and Unaffiliated Entities. Capital may generally be redeemed from Affiliated Entities on a monthly basis upon adequate notice as determined in the sole discretion of each entity’s investment manager. Capital invested in Unaffiliated Entities may generally be redeemed at various intervals ranging from monthly to annually upon notice of 30 to 95 days. Certain Unaffiliated Entities may require a minimum investment period before capital can be voluntarily redeemed (a “Lockup Period”). No investment in an Unaffiliated Entity has an unexpired Lockup Period. The Company has no outstanding capital commitments to any Affiliated or Unaffiliated Entity. The following table presents additional information about assets by major category measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Three months ended September 30, 2019 Three months ended September 30, 2018 Common Stocks Other Total Common Stocks Other Total Beginning balance $ 191 $ 4,255 $ 4,446 $ 590 $ 4,465 $ 5,055 Total gains/(losses) (102 ) (46 ) (148 ) 2 2 4 Purchases - - - - 15 15 Sales - - - - - - Transfers - - - (580 ) 53 (527 ) Ending balance $ 89 $ 4,209 $ 4,298 $ 12 $ 4,535 $ 4,547 Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date $ (102 ) $ (46 ) $ (148 ) $ 2 $ 2 $ 4 Total realized and unrealized gains and losses for level 3 assets are reported in net gain/(loss) from investments in the condensed consolidated statements of income. During the three months ended September 30, 2018, the Company transferred an investment with a value of approximately $580,000 from Level 3 to Level 1. The reclassification was due to increased availability of market price quotations and was based on the value at the beginning of the period in which the transfer occurred. Nine months ended September 30, 2019 Nine months ended September 30, 2018 Common Stocks Other Total Common Stocks Other Total Beginning balance $ 12 $ 3,458 $ 3,470 $ 618 $ 1,169 $ 1,787 Consolidated fund 984 984 Total gains/(losses) 14 751 765 (1 ) (2,413 ) (2,414 ) Purchases - - - - 4,773 4,773 Sales - - - - (31 ) (31 ) Transfers 63 - 63 (605 ) 53 (552 ) Ending balance $ 89 $ 4,209 $ 4,298 $ 12 $ 4,535 $ 4,547 Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date $ 14 $ 751 $ 765 $ - $ (2,429 ) $ (2,429 ) During the nine months ended September 30, 2019 the Company transferred an investment with a value of approximately $63,000 from Level 1 to Level 3 due to the unavailability of observable inputs. During the nine months ended September 30, 2018, the Company transferred an investment with a value of approximately $605,000 from Level 3 to Level 1 due to increased availability of market price quotations. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2019 | |
Income Taxes [Abstract] | |
Income Taxes | F. Income Taxes The effective tax rate (“ETR”) for the three months ended September 30, 2019 and September 30, 2018 was 21.7% and 10.6%, respectively. The ETR in the third quarter of 2019 differs from the standard corporate tax rate of 21% primarily due to state and local taxes (net of federal benefit), the benefit of (a) the donation of appreciated securities and (b) the dividends received deduction. The ETR in the third quarter of 2018 differs from the standard corporate tax rate of 21% primarily due to state and local taxes (net of federal benefit) and the impact of (a) income attributable to noncontrolling interests, (b) the donation of appreciated securities, and (c) the dividends received deduction. The ETR for the nine months ended September 30, 2019 and September 30, 2018 was 19.7% and 20.1%, respectively. The 2019 year-to-date ETR differs from the standard corporate tax rate of 21% primarily due to (a) state and local taxes (net of federal benefit), (b) the donation of appreciated securities, and (c) the dividends received deduction, and (d) income attributable to noncontrolling interests. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | G. Earnings Per Share Basic earnings per share is computed by dividing net income/(loss) per share attributable to our shareholders by the weighted average number of shares outstanding during the period. Diluted earnings per share is computed by dividing net income/(loss) per share attributable to our shareholders by the weighted average number of shares outstanding during the period, adjusted for the dilutive effect of outstanding RSAs. There were no outstanding AC RSAs during the nine months ended September 30, 2019 and 2018. The computations of basic and diluted net income/(loss) per share are as follows: Three Months Ended September 30, Nine Months Ended September 30, (amounts in thousands, except per share amounts) 2019 2018 2019 2018 Basic: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ 5,951 $ (7,379 ) $ 28,166 $ (17,784 ) Weighted average shares outstanding 22,514 22,979 22,550 23,187 Basic net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.26 $ (0.32 ) $ 1.25 $ (0.77 ) Diluted: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ 5,951 $ (7,379 ) $ 28,166 $ (17,784 ) Weighted average share outstanding 22,514 22,979 22,550 23,187 Dilutive restricted stock awards - - - - Total 22,514 22,979 22,550 23,187 Diluted net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.26 $ (0.32 ) $ 1.25 $ (0.77 ) |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | H. Stockholders’ Equity Shares outstanding were 22.5 million and 22.6 million at September 30, 2019 and December 31, 2018, respectively. Dividends During the nine months ended September 30, 2019 and 2018, the Company declared dividends of $0.10 per share to class A and class B shareholders. Stock Repurchase Program For the three months ended September 30, 2019 and 2018, the Company repurchased approximately 36 thousand and 20 thousand shares at an average price of $36.75 per share and $36.27 per share for a total investment of $1.3 million and $0.7 million, respectively. During nine months ended September 30, 2019 and 2018, the Company repurchased approximately 89 thousand and 668 thousand shares at an average price of $37.81 and $36.37 per share for a total investment of $3.4 million and $24.3 million, respectively. Exchange Offers In February 2018, AC completed an exchange offer with respect to its Class A shares. Tendering shareholders received 1.35 GAMCO Class A shares for each AC Class A share, together with cash in lieu of any fractional share. Upon completion of the offer, shareholders tendered 493,954 Class A shares in exchange for 666,805 GAMCO Class A shares with a value of $17.7 million. In October 2018, the Company completed an exchange offer with respect to its Class A shares. Tendering shareholders received 1.9 GAMCO Class A shares for each AC Class A share, together with cash in lieu of any fractional share. Upon completion of the offer, shareholders tendered 373,581 shares in exchange for 709,749 GAMCO shares with a value of approximately $14.6 million. Voting Rights The holders of Class A Common stock (“Class A Stock”) and Class B Common stock (“Class B Stock”) have identical rights except that (a) holders of Class A Stock are entitled to one vote per share, while holders of Class B Stock are entitled to ten votes per share on all matters to be voted on by shareholders in general, and (b) holders of each share class are not eligible to vote on matters relating exclusively to the other share class. Stock Award and Incentive Plan On November 30, 2015, in connection with the Spin-off, the Company issued 554,100 AC RSA shares to GAMCO employees (including GAMCO employees who became AC employees) who held 554,100 GAMCO RSA shares at that date. The purpose of the issuance was to ensure that any employee who had GAMCO RSAs were granted an equal number of AC RSAs so that the total value of the RSAs post-spin-off was equivalent to the total value pre-spin-off. In accordance with GAAP, we have allocated the stock compensation costs of both the AC RSAs and the GAMCO RSAs between GAMCO and AC based upon the allocation of each employee’s responsibilities between the companies. The vesting of the GAMCO RSAs outstanding was accelerated in the first quarter of 2018. There were no AC RSAs outstanding at September 30, 2019 and 2018 and during the nine month periods then ended. There were no RSAs issued by AC during the three and nine months ended September 30, 2019 or 2018. In August and December 2018, the Company’s Board of Directors approved the grant of 172,800 shares of Phantom Restricted Stock awards (“Phantom RSAs”). Under the terms of the grants, which were effective August 8 and December 31, the Phantom RSAs vest 30% and 70% after three and five years, respectively. The Phantom RSAs will be settled by a cash payment, net of applicable withholding tax, on the vesting dates. In addition, an amount equivalent to the cumulative dividends declared on shares of the Company’s Class A common stock during the vesting period will be paid to participants on vesting. Based on the price of the Company’s stock, the total value of the Phantom RSAs was $6.1 million as of the grant dates. Pursuant to ASC 718, the Phantom RSAs will be treated as a liability because cash settlement is required and compensation will be recognized over the vesting period. In determining the compensation expense to be recognized each period, the Company will re-measure the fair value of the liability at each reporting date taking into account the remaining vesting period attributable to each award and the current market value of the Company’s Class A stock. In making these determinations, the Company will consider the impact of Phantom RSAs that have been forfeited prior to vesting (e.g., due to an employee termination). The Company has elected to consider forfeitures as they occur. As of September 30, 2019, there were 157,300 Phantom RSAs outstanding. The unrecognized compensation cost related to these was $4.0 million which is expected to be recognized over a weighted-average period of 2.1 years. For the nine and three months ended September 30, 2019 the Company recorded approximately $1.0 million and $0.3 million in stock-based compensation expense, respectively. For the nine and three months ended September 30, 2018 the Company recorded approximately $0.4 million and $0.3 million in stock-based compensation expense, respectively. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 9 Months Ended |
Sep. 30, 2019 | |
Goodwill and Identifiable Intangible Assets [Abstract] | |
Goodwill and Identifiable Intangible Assets | I. Goodwill and Identifiable Intangible Assets At September 30, 2019, goodwill and intangible assets on the condensed consolidated statements of financial condition includes $3.4 million of goodwill related to GCIA. The Company assesses the recoverability of goodwill at least annually, or more often should events warrant, using a qualitative assessment of whether it is more likely than not that an impairment has occurred to determine if a quantitative analysis is required. There were no indicators of impairment for the three months ended September 30, 2019 or September 30, 2018, and as such there was no impairment analysis performed or charge recorded. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2019 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | J. Commitments and Contingencies From time to time, the Company may be named in legal actions and proceedings. These actions may seek substantial or indeterminate compensatory as well as punitive damages or injunctive relief. We are also subject to governmental or regulatory examinations or investigations. The examinations or investigations could result in adverse judgments, settlements, fines, injunctions, restitutions or other relief. For any such matters, the condensed consolidated financial statements include the necessary provisions for losses that the Company believes are probable and estimable. Furthermore, the Company evaluates whether losses exist which may be reasonably possible and will, if material, make the necessary disclosures. Management believes, however, that such amounts, both those that are probable and those that are reasonably possible, are not material to the Company’s financial condition, results of operations or cash flows at September 30, 2019. G.research has agreed to indemnify clearing brokers for losses they may sustain from customer accounts introduced by G.research that trade on margin. At each of September 30, 2019 and December 31, 2018, the total amount of customer balances subject to indemnification (i.e., unsecured margin debits) was immaterial. The Company has also entered into arrangements with various other third parties, many of which provide for indemnification of the third parties against losses, costs, claims and liabilities arising from the performance of obligations under the agreements. The Company has had no claims or payments pursuant to these or prior agreements and believes the likelihood of a claim being made is remote, and, therefore, no accrual has been made on the condensed consolidated financial statements. |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | K. Related Party Transactions On April 23, 2019, the Company issued a promissory note for $2.1 million to our Executive Chairman. The promissory note was re-paid with interest at 1% per annum on May 28, 2019. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | L. Subsequent Events On October 11, 2019, the research service agreements between the Company and two wholly-owned subsidiaries of GBL, GAMCO Asset Management, Inc. and Gabelli Funds, LLC, were agreed to be terminated effective January 1, 2020. Additionally, compensation and other related costs are expected to decrease. On October 31, 2019, the Company closed on the transaction whereby Morgan Group Holding Co. (“Morgan Group”), an entity under common control of the majority shareholder of AC, acquired G.research in exchange for 50 million shares of its stock. In addition, immediately prior to the closing, 5.15 million Morgan Group shares were issued under a private placement for $515,000. Subsequent to the transaction and private placement, AC has an 83.3% ownership interest in Morgan Group and will consolidate the entity, which now includes G.research. As the transaction is among entities under common control, all assets, liabilities and noncontrolling interest will be accounted for at historical cost. As Morgan Group is a shell company with minimal assets and income and G.research will continue to be consolidated both before and after the transaction, ACs consolidated statement of financial condition and statement of operations will not be materially different. During the period from October 1, 2019 to November 8, 2019, the Company repurchased 7,110 shares at an average price of $36.39 per share. On November 8, 2019, the Company declared a semi-annual dividend of $0.10 per share payable January 9, 2020 to shareholders of record on December 26, 2019. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
The Spin-off and Related Transactions | The Spin-off and Related Transactions We are a Delaware corporation that provides alternative investment management, institutional research and underwriting services. In addition, we derive investment income/(loss) from proprietary trading of cash and other assets awaiting deployment in our operating business. On November 30, 2015, GAMCO Investors, Inc. (“GAMCO” or “GBL”) distributed all the outstanding shares of each class of AC common stock on a pro rata one-for-one basis to the holders of each class of GAMCO’s common stock (the “Spin-off”). We conduct our investment management activities through our wholly-owned subsidiary Gabelli & Company Investment Advisers, Inc. (“GCIA” f/k/a Gabelli Securities, Inc.). GCIA and its wholly-owned subsidiary, Gabelli & Partners, LLC (“Gabelli & Partners”), collectively serve as general partners or investment managers to investment funds including limited partnerships and offshore companies (collectively, “Investment Partnerships”), and separate accounts. We primarily manage assets in equity event-driven value strategies, across a range of risk and event arbitrage portfolios. The business earns management and incentive fees from its advisory activities. Management fees are largely based on a percentage of assets under management. Incentive fees are based on the percentage of the investment returns of certain clients’ portfolios. GCIA is an investment adviser registered with the Securities and Exchange Commission under the Investment Advisers Act of 1940, as amended. We provide our institutional research and underwriting services through G.research, LLC (“G.research”), an indirect wholly-owned subsidiary of the Company. G.research is a broker-dealer registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and is regulated by the Financial Industry Regulatory Authority (“FINRA”). G.research’s revenues are derived primarily from institutional research services. We may make direct investments in operating businesses using a variety of techniques and structures. For example, in April 2018, the Company sponsored a €110 million initial public offering of its first special purpose acquisition corporation, the Gabelli Value for Italy S.p.a., an Italian company listed on the London Stock Exchange’s Borsa Italiana AIM segment under the symbol “VALU”. VALU was created to acquire a small- to medium-sized Italian franchise business with the potential for international expansion, particularly in the United States. In connection with the Spin-off, GAMCO issued a promissory note (the “GAMCO Note”) to AC Group in the original principal amount of $250 million used to partially capitalize the Company. During the year ended December 31, 2018, AC received principal repayments totaling $50 million on the GAMCO Note which fully satisfied the outstanding principal balance. The GAMCO Note bore interest at 4% per annum and had an original maturity date of November 30, 2020. In addition, GCIA acquired 4,393,055 shares of GAMCO Class A common stock for $150 million in connection with the Spin-off. |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements of AC Group included herein have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by GAAP in the United States for complete financial statements. In the opinion of management, the unaudited interim condensed consolidated financial statements reflect all adjustments, which are of a normal recurring nature, necessary for a fair presentation of financial position, results of operations and cash flows of the Company for the interim periods presented and are not necessarily indicative of a full year’s results. The interim condensed consolidated financial statements include the accounts of AC Group and its subsidiaries. All material intercompany transactions and balances have been eliminated. These interim condensed consolidated financial statements should be read in conjunction with our audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2018. |
Use of Estimates | Use of Estimates The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported on the condensed consolidated financial statements and accompanying notes. Actual results could differ from those estimates. |
Recent Accounting Developments | Recent Accounting Developments In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which amends the guidance in GAAP for the accounting for leases. ASU 2016-02 requires a lessee to recognize assets and liabilities arising from most operating leases in the condensed consolidated statement of financial position. The new standard was effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018. The Company adopted this ASU effective January 1, 2019 with no material impact on its condensed consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement. This ASU adds certain disclosure requirements and modifies or eliminates requirements under current GAAP. This ASU is effective for fiscal years beginning after December 15, 2019 and early adoption is permitted. The Company has early adopted the eliminated and modified disclosure requirements and is currently evaluating this guidance as it relates to the new disclosure requirements. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue [Abstract] | |
Revenues by Type | Total revenues by type were as follows for the three and six ended September 30, 2019 and 2018, respectively (in thousands): Three months ended September 30, Nine months ended September 30, 2019 2018 2019 2018 Investment advisory and incentive fees Asset-based advisory fees $ 1,723 $ 1,879 $ 5,208 $ 5,561 Performance-based advisory fees 35 27 61 34 Sub-advisory fees 995 899 2,930 2,354 2,753 2,805 8,199 7,949 Institutional research services Hard dollar payments 520 541 1,470 2,236 Commissions 1,365 1,284 4,207 3,844 Selling concessions - 15 75 84 Sales manager fees 469 15 591 15 2,354 1,855 6,343 6,179 Other Underwriting fees 5 - 24 19 Miscellaneous 6 6 25 18 11 6 49 37 Total $ 5,118 $ 4,666 $ 14,591 $ 14,165 |
Investment in Securities (Table
Investment in Securities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment in Securities [Abstract] | |
Investments in Securities | Investments in securities, including GBL stock, at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Government obligations $ 28,842 $ 29,335 $ 11,694 $ 11,707 Common stocks 289,127 268,951 244,557 213,151 Mutual funds 659 1,137 761 1,161 Other investments 5,776 4,613 5,285 3,941 Total investments in securities $ 324,404 $ 304,036 $ 262,297 $ 229,960 |
Securities Sold, Not Yet Purchased | Securities sold, not yet purchased at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Proceeds Fair Value Proceeds Fair Value Common stocks $ 24,894 $ 25,402 $ 10,150 $ 9,485 Other investments - 73 - 89 Total securities sold, not yet purchased $ 24,894 $ 25,475 $ 10,150 $ 9,574 |
Investments in Affiliated Registered Investment Companies | Investments in affiliated registered investment companies at September 30, 2019 and December 31, 2018 consisted of the following (in thousands): September 30, 2019 December 31, 2018 Cost Fair Value Cost Fair Value Closed-end funds $ 73,938 $ 95,017 $ 73,950 $ 85,090 Mutual funds 47,390 57,436 49,714 57,045 Total investments in affiliated registered investment companies $ 121,328 $ 152,453 $ 123,664 $ 142,135 |
Fair Values of All Derivatives | The following table identifies the fair values of all derivatives held by the Company (in thousands): Asset Derivatives Liability Derivatives Statement of Financial Condition Location Fair Value Statement of Financial Condition Location Fair Value September 30, 2019 December 31, 2018 September 30, 2019 December 31, 2018 Derivatives designated as hedging instruments under FASB ASC 815-20 Foreign exchange contracts Receivable from brokers $ 79 $ 204 Payable to brokers $ - $ - Sub total $ 79 $ 204 $ - $ - Derivatives not designated as hedging instruments under FASB ASC 815-20 Equity contracts Investments in securities $ 77 $ 464 Securities sold, not yet purchased $ 73 $ 89 Sub total $ 77 $ 464 $ 73 $ 89 Total derivatives $ 156 $ 668 $ 73 $ 89 |
Derivative Instruments, Gain (Loss) | The following table identifies gains and losses of all derivatives held by the Company (in thousands): Type of Derivative Income Statement Location Three Months ended September 30, Nine Months ended September 30, 2019 2018 2019 2018 Foreign exchange contracts Net gain/(loss) from investments $ 124 $ 36 $ 177 $ 138 Equity contracts Net gain/(loss) from investments 1,143 652 (324 ) 3,304 Total $ 1,267 $ 688 $ (147 ) $ 3,442 |
Master Netting Arrangements for Swaps | The swaps have a firm contract end date and are closed out and settled when each contract expires. Gross Amounts of Recognized Assets Gross Amounts Offset in the Statements of Financial Condition Net Amounts of Assets Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Financial Instruments Cash Collateral Received Net Amount Swaps: (In thousands) September 30, 2019 $ 77 $ - $ 77 $ (73 ) $ - $ 4 December 31, 2018 416 - 416 (89 ) - 327 Gross Amounts of Recognized Liabilities Gross Amounts Offset in the Statements of Financial Condition Net Amounts of Liabilities Presented in the Statements of Financial Condition Gross Amounts Not Offset in the Statements of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount Swaps: (In thousands) September 30, 2019 $ 73 $ - $ 73 $ (73 ) $ - $ - December 31, 2018 89 - 89 (89 ) - - |
Investment Partnerships and V_2
Investment Partnerships and Variable Interest Entities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Investment Partnerships and Variable Interest Entities [Abstract] | |
Number of Entities Consolidated | The following table highlights the number of entities that we consolidate as well as the basis under which they are consolidated: VIEs VOEs Entities consolidated at December 31, 2017 1 3 Additional consolidated entities - 2 Deconsolidated entities - - Entities consolidated at September 30, 2018 1 5 Additional consolidated entities - - Deconsolidated entities - - Entities consolidated at December 31, 2018 1 5 Additional consolidated entities - - Deconsolidated entities - - Entities consolidated at September 30, 2019 1 5 |
Condensed Consolidated Statements of Financial Condition by Entity Consolidated | The following table includes the net impact by line item on the condensed consolidated statements of financial condition for the consolidated entities (in thousands): September 30, 2019 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents 346,501 $ 4,433 $ 350,934 Investments in securities (including GBL stock) 167,129 136,907 304,036 Investments in affiliated investment companies 212,576 (60,123 ) 152,453 Investments in partnerships 165,088 (21,430 ) 143,658 Receivable from brokers 8,364 15,338 23,702 Investment advisory fees receivable 1,308 (21 ) 1,287 Other assets 17,017 38 17,055 Total assets $ 917,983 $ 75,142 $ 993,125 Liabilities and equity Securities sold, not yet purchased $ 7,538 $ 17,937 $ 25,475 Accrued expenses and other liabilities 21,648 7,506 29,154 Redeemable noncontrolling interests - 49,699 49,699 Total equity 888,797 - 888,797 Total liabilities and equity $ 917,983 $ 75,142 $ 993,125 December 31, 2018 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents $ 396,074 $ 13,490 $ 409,564 Investments in securities (including GBL stock) 131,764 98,196 229,960 Investments in affiliated investment companies 193,006 (50,871 ) 142,135 Investments in partnerships 138,119 (19,390 ) 118,729 Receivable from brokers 7,998 16,631 24,629 Investment advisory fees receivable 4,427 (33 ) 4,394 Other assets 24,551 471 25,022 Total assets $ 895,939 $ 58,494 $ 954,433 Liabilities and equity Securities sold, not yet purchased $ 4,631 $ 4,943 $ 9,574 Accrued expenses and other liabilities 25,060 3,751 28,811 Redeemable noncontrolling interests - 49,800 49,800 Total equity 866,248 - 866,248 Total liabilities and equity $ 895,939 $ 58,494 $ 954,433 |
Condensed Consolidated Statements of Income by Entity Consolidated | The following table includes the net impact by line item on the condensed consolidated statements of income for the consolidated entities (in thousands): Three Months Ended September 30, 2019 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 5,299 $ (181 ) $ 5,118 Total expenses 8,251 (124 ) 8,127 Operating loss (2,952 ) (57 ) (3,009 ) Total other income/(expense), net 10,457 (302 ) 10,155 Income/(loss) before income taxes 7,505 (359 ) 7,146 Income tax expense 1,554 - 1,554 Net income/(loss) before NCI 5,951 (359 ) 5,592 Net loss attributable to noncontrolling interests - (359 ) (359 ) Net income $ 5,951 $ - $ 5,951 Three Months Ended September 30, 2018 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 4,683 $ (17 ) $ 4,666 Total expenses 7,698 467 8,165 Operating loss (3,015 ) (484 ) (3,499 ) Total other income/(expense), net (5,222 ) 641 (4,581 ) Income/(loss) before income taxes (8,237 ) 157 (8,080 ) Income tax benefit (858 ) - (858 ) Net income/(loss) before NCI (7,379 ) 157 (7,222 ) Net income attributable to noncontrolling interests - 157 157 Net loss $ (7,379 ) $ - $ (7,379 ) Nine Months Ended September 30, 2019 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 15,117 $ (526 ) $ 14,591 Total expenses 27,370 1,257 28,627 Operating loss (12,253 ) (1,783 ) (14,036 ) Total other income, net 47,887 4,015 51,902 Income before income taxes 35,634 2,232 37,866 Income tax expense 7,468 - 7,468 Net income before NCI 28,166 2,232 30,398 Net income attributable to noncontrolling interests - 2,232 2,232 Net income $ 28,166 $ - $ 28,166 Nine Months Ended September 30, 2018 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 14,215 $ (50 ) $ 14,165 Total expenses 23,913 1,447 25,360 Operating loss (9,698 ) (1,497 ) (11,195 ) Total other income/(expense), net (12,290 ) 2,550 (9,740 ) Income/(loss) before income taxes (21,988 ) 1,053 (20,935 ) Income tax benefit (4,204 ) - (4,204 ) Net income/(loss) before NCI (17,784 ) 1,053 (16,731 ) Net income attributable to noncontrolling interests - 1,053 1,053 Net loss $ (17,784 ) $ - $ (17,784 ) |
GAMCO's Net Interests in Consolidated VIE's | The following table presents the balances related to the VIE that is consolidated and included on the condensed consolidated statements of financial condition as well as the Company’s net interest in this VIE (in thousands): September 30, 2019 December 31, 2018 Cash and cash equivalents $ 1,986 $ 2,560 Investments in securities 9,255 7,253 Receivable from brokers 473 553 Other assets - (11 ) Accrued expenses and other liabilities (41 ) (31 ) Redeemable noncontrolling interests (447 ) (419 ) AC Group’s net interests in consolidated VIE $ 11,226 $ 9,905 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present assets and liabilities measured at fair value on a recurring basis as of the dates specified (except for Investment Partnerships) (in thousands): September 30, 2019 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Using NAV as Fair Value (a) Other Assets Not Held at Fair Value (b) Total Cash equivalents $ 349,848 $ - $ - $ - $ - $ 349,848 Investments in partnerships - - - 139,401 4,257 143,658 Investments in securities (including GBL stock): Gov’t obligations 29,335 - - 29,335 Common stocks 268,361 501 89 - - 268,951 Mutual funds 1,137 - - - - 1,137 Other 316 88 4,209 - - 4,613 Total investments in securities 299,149 589 4,298 - - 304,036 Investments in affiliated registered investment companies: Closed-end funds 95,017 - - - - 95,017 Mutual funds 57,436 - - - - 57,436 Total investments in affiliated registered investment companies 152,453 - - - - 152,453 Total investments 451,602 589 4,298 139,401 4,257 600,147 Total assets at fair value $ 801,450 $ 589 $ 4,298 $ 139,401 $ 4,257 $ 949,995 Liabilities Common stocks $ 25,402 $ - $ - $ - $ - $ 25,402 Other - 73 - - - 73 Securities sold, not yet purchased $ 25,402 $ 73 $ - $ - $ - $ 25,475 December 31, 2018 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Investments Using NAV as Fair Value (a) Other Assets Not Held at Fair Value (b) Total Cash equivalents $ 407,239 $ - $ - $ - $ - $ 407,239 Investments in partnerships - - - 114,449 4,280 118,729 Investments in securities (including GBL stock): Gov’t obligations 11,707 - - - - 11,707 Common stocks 205,978 7,161 12 - - 213,151 Mutual funds 1,161 - - - - 1,161 Other 19 464 3,458 - - 3,941 Total investments in securities 218,865 7,625 3,470 - - 229,960 Investments in affiliated registered investment companies: Closed-end funds 85,090 - - - - 85,090 Mutual funds 57,045 - - - - 57,045 Total investments in affiliated registered investment companies 142,135 - - - - 142,135 Total investments 361,000 7,625 3,470 114,449 4,280 490,824 Total assets at fair value $ 768,239 $ 7,625 $ 3,470 $ 114,449 $ 4,280 $ 898,063 Liabilities Common stocks $ 9,485 $ - $ - $ - $ - $ 9,485 Other - 89 - - - 89 Securities sold, not yet purchased $ 9,485 $ 89 $ - $ - $ - $ 9,574 (a) Amounts include certain equity method investments in Investment Partnerships which qualify for investment company specialized accounting. These Investment Partnerships account for their financial assets and liabilities using fair value measures and, therefore, the Company’s investment approximates fair value. At September 30, 2019 and December 31, 2018, investments in these Investment Partnerships were $131,082 and $105,020, respectively. In addition, certain investments in Investment Partnerships were held by a consolidated entity. At September 30, 2019 and December 31, 2018, these amounts were $8,319 and $9,429, respectively. None of these investments have been classified in the fair value hierarchy. (b) Amounts include certain equity method investments which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company’s investment in such equity method investees may not represent fair value. |
Changes in Level 3 Assets and Liabilities | The following table presents additional information about assets by major category measured at fair value on a recurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Three months ended September 30, 2019 Three months ended September 30, 2018 Common Stocks Other Total Common Stocks Other Total Beginning balance $ 191 $ 4,255 $ 4,446 $ 590 $ 4,465 $ 5,055 Total gains/(losses) (102 ) (46 ) (148 ) 2 2 4 Purchases - - - - 15 15 Sales - - - - - - Transfers - - - (580 ) 53 (527 ) Ending balance $ 89 $ 4,209 $ 4,298 $ 12 $ 4,535 $ 4,547 Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date $ (102 ) $ (46 ) $ (148 ) $ 2 $ 2 $ 4 During the three months ended September 30, 2018, the Company transferred an investment with a value of approximately $580,000 from Level 3 to Level 1. The reclassification was due to increased availability of market price quotations and was based on the value at the beginning of the period in which the transfer occurred. Nine months ended September 30, 2019 Nine months ended September 30, 2018 Common Stocks Other Total Common Stocks Other Total Beginning balance $ 12 $ 3,458 $ 3,470 $ 618 $ 1,169 $ 1,787 Consolidated fund 984 984 Total gains/(losses) 14 751 765 (1 ) (2,413 ) (2,414 ) Purchases - - - - 4,773 4,773 Sales - - - - (31 ) (31 ) Transfers 63 - 63 (605 ) 53 (552 ) Ending balance $ 89 $ 4,209 $ 4,298 $ 12 $ 4,535 $ 4,547 Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to level 3 assets still held as of the reporting date $ 14 $ 751 $ 765 $ - $ (2,429 ) $ (2,429 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Computations of Basic and Diluted Net Income (Loss) Per Share | The computations of basic and diluted net income/(loss) per share are as follows: Three Months Ended September 30, Nine Months Ended September 30, (amounts in thousands, except per share amounts) 2019 2018 2019 2018 Basic: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ 5,951 $ (7,379 ) $ 28,166 $ (17,784 ) Weighted average shares outstanding 22,514 22,979 22,550 23,187 Basic net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.26 $ (0.32 ) $ 1.25 $ (0.77 ) Diluted: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ 5,951 $ (7,379 ) $ 28,166 $ (17,784 ) Weighted average share outstanding 22,514 22,979 22,550 23,187 Dilutive restricted stock awards - - - - Total 22,514 22,979 22,550 23,187 Diluted net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ 0.26 $ (0.32 ) $ 1.25 $ (0.77 ) |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) € in Millions, $ in Millions | Nov. 30, 2015shares | Apr. 30, 2018EUR (€) | Sep. 30, 2019USD ($)shares | Dec. 31, 2018USD ($) |
The Spin-off and Related Transactions [Abstract] | ||||
Number of AC shares issued for each GAMCO shares in connection with spin-off (in shares) | shares | 1 | |||
GAMCO Note [Member] | ||||
The Spin-off and Related Transactions [Abstract] | ||||
Notes receivable, face amount | $ | $ 250 | |||
Notes receivable, interest rate | 4.00% | |||
Notes receivable, maturity date | Nov. 30, 2020 | |||
Principal repayments received | $ | $ 50 | |||
Gabelli Value for Italy S.p.a. [Member] | ||||
The Spin-off and Related Transactions [Abstract] | ||||
Proceeds from Initial public offering | € | € 110 | |||
GAMCO [Member] | ||||
The Spin-off and Related Transactions [Abstract] | ||||
Number of GAMCO shares exchanged for each AC shares in connection with spin-off (in shares) | shares | 1 | |||
GAMCO [Member] | Class A [Member] | ||||
The Spin-off and Related Transactions [Abstract] | ||||
Number of shares of common stock acquired (in shares) | shares | 4,393,055 | |||
GCIA [Member] | ||||
The Spin-off and Related Transactions [Abstract] | ||||
Notes receivable, face amount | $ | $ 150 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues by type [Abstract] | ||||
Revenues | $ 5,118 | $ 4,666 | $ 14,591 | $ 14,165 |
Investment Advisory and Incentive Fees [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 2,753 | 2,805 | 8,199 | 7,949 |
Asset-Based Advisory Fees [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 1,723 | 1,879 | $ 5,208 | 5,561 |
Asset-Based Advisory Fees [Member] | Minimum [Member] | ||||
Major Revenue Sources [Abstract] | ||||
Percentage of management fee | 1.00% | |||
Asset-Based Advisory Fees [Member] | Maximum [Member] | ||||
Major Revenue Sources [Abstract] | ||||
Percentage of management fee | 1.50% | |||
Performance-Based Advisory Fees [Member] | ||||
Major Revenue Sources [Abstract] | ||||
Percentage of investment performance calculated for additional fees | 20.00% | |||
Revenues by type [Abstract] | ||||
Revenues | 35 | 27 | $ 61 | 34 |
Sub-Advisory Fees [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 995 | 899 | 2,930 | 2,354 |
Institutional Research Services [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 2,354 | 1,855 | 6,343 | 6,179 |
Hard Dollar Payments [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 520 | 541 | 1,470 | 2,236 |
Commissions [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 1,365 | 1,284 | 4,207 | 3,844 |
Selling Concessions [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 0 | 15 | 75 | 84 |
Sales Manager Fees [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 469 | 15 | 591 | 15 |
Other [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 11 | 6 | 49 | 37 |
Underwriting Fees [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | 5 | 0 | 24 | 19 |
Miscellaneous [Member] | ||||
Revenues by type [Abstract] | ||||
Revenues | $ 6 | $ 6 | $ 25 | $ 18 |
Investment in Securities, Inves
Investment in Securities, Investment in Securities (Details) - Investment in Securities [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Total investments in securities [Abstract] | ||
Cost | $ 324,404 | $ 262,297 |
Fair value | 304,036 | 229,960 |
Government Obligations [Member] | ||
Total investments in securities [Abstract] | ||
Cost | 28,842 | 11,694 |
Fair value | 29,335 | 11,707 |
Common Stocks [Member] | ||
Total investments in securities [Abstract] | ||
Cost | 289,127 | 244,557 |
Fair value | 268,951 | 213,151 |
Mutual Funds [Member] | ||
Total investments in securities [Abstract] | ||
Cost | 659 | 761 |
Fair value | 1,137 | 1,161 |
Other Investments [Member] | ||
Total investments in securities [Abstract] | ||
Cost | 5,776 | 5,285 |
Fair value | $ 4,613 | $ 3,941 |
Investment in Securities, Secur
Investment in Securities, Securities Sold, Not Yet Purchased (Details) - Investment in Securities [Member] - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Equity securities [Abstract] | ||
Proceeds | $ 24,894 | $ 10,150 |
Fair value | 25,475 | 9,574 |
Common Stocks [Member] | ||
Equity securities [Abstract] | ||
Proceeds | 24,894 | 10,150 |
Fair value | 25,402 | 9,485 |
Other Investments [Member] | ||
Equity securities [Abstract] | ||
Proceeds | 0 | 0 |
Fair value | $ 73 | $ 89 |
Investment in Securities, Inv_2
Investment in Securities, Investment in Affiliated Registered Investment Companies (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | $ 121,328 | $ 123,664 |
Fair value | 152,453 | 142,135 |
Investment in Affiliated Registered Investment Companies [Member] | Closed-end Funds [Member] | ||
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | 73,938 | 73,950 |
Fair value | 95,017 | 85,090 |
Investment in Affiliated Registered Investment Companies [Member] | Mutual Funds [Member] | ||
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | 47,390 | 49,714 |
Fair value | $ 57,436 | $ 57,045 |
Investment in Securities, Fair
Investment in Securities, Fair Values and Gains and Losses of All Derivatives Held (Details) - USD ($) $ in Thousands, shares in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Fair Values of All Derivatives Held [Abstract] | |||||
Asset derivatives fair values | $ 156 | $ 156 | $ 668 | ||
Liability derivatives fair value | 73 | 73 | $ 89 | ||
Gains and Losses of All Derivatives Held [Abstract] | |||||
Net gain/(loss) from investments | $ 1,267 | $ 688 | $ (147) | $ 3,442 | |
Shares under derivative contract (in shares) | 2.5 | 2.5 | 1 | ||
Net gain/(loss) from investments [Member] | Equity Contracts [Member] | |||||
Gains and Losses of All Derivatives Held [Abstract] | |||||
Net gain/(loss) from investments | $ 1,143 | 652 | $ (324) | 3,304 | |
Net gain/(loss) from investments [Member] | Foreign Exchange Contracts [Member] | |||||
Gains and Losses of All Derivatives Held [Abstract] | |||||
Net gain/(loss) from investments | 124 | $ 36 | 177 | $ 138 | |
Derivatives Designated as Hedging Instruments under FASB ASC 815-20 [Member] | |||||
Fair Values of All Derivatives Held [Abstract] | |||||
Asset derivatives fair values | 79 | 79 | $ 204 | ||
Liability derivatives fair value | 0 | 0 | 0 | ||
Derivatives Designated as Hedging Instruments under FASB ASC 815-20 [Member] | Receivable from Brokers [Member] | Foreign Exchange Contracts [Member] | |||||
Fair Values of All Derivatives Held [Abstract] | |||||
Asset derivatives fair values | 79 | 79 | 204 | ||
Derivatives Designated as Hedging Instruments under FASB ASC 815-20 [Member] | Payable to Brokers [Member] | Foreign Exchange Contracts [Member] | |||||
Fair Values of All Derivatives Held [Abstract] | |||||
Liability derivatives fair value | 0 | 0 | 0 | ||
Derivatives Not Designated as Hedging Instruments under FASB ASC 815-20 [Member] | |||||
Fair Values of All Derivatives Held [Abstract] | |||||
Asset derivatives fair values | 77 | 77 | 464 | ||
Liability derivatives fair value | 73 | 73 | 89 | ||
Derivatives Not Designated as Hedging Instruments under FASB ASC 815-20 [Member] | Investments in Securities [Member] | Equity Contracts [Member] | |||||
Fair Values of All Derivatives Held [Abstract] | |||||
Asset derivatives fair values | 77 | 77 | 464 | ||
Derivatives Not Designated as Hedging Instruments under FASB ASC 815-20 [Member] | Securities Sold, Not yet Purchased [Member] | Equity Contracts [Member] | |||||
Fair Values of All Derivatives Held [Abstract] | |||||
Liability derivatives fair value | $ 73 | $ 73 | $ 89 |
Investment in Securities, Maste
Investment in Securities, Master Netting Arrangements for Swaps (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Offsetting derivative assets [Abstract] | ||
Gross amounts of recognized assets | $ 156 | $ 668 |
Swaps [Member] | ||
Offsetting derivative assets [Abstract] | ||
Gross amounts of recognized assets | 77 | 416 |
Gross amounts offset in the statements of financial condition | 0 | 0 |
Net amounts of assets presented in the statements of financial condition | 77 | 416 |
Gross amounts not offset in the statements of financial condition [Abstract] | ||
Financial instruments | (73) | (89) |
Cash collateral received | 0 | 0 |
Net amount | 4 | 327 |
Offsetting derivative liabilities [Abstract] | ||
Gross amounts of recognized liabilities | 73 | 89 |
Gross amounts offset in the statements of financial condition | 0 | 0 |
Net amounts of liabilities presented in the statements of financial condition | 73 | 89 |
Gross amounts not offset in the statements of financial condition [Abstract] | ||
Financial instruments | (73) | (89) |
Cash collateral pledged | 0 | 0 |
Net amount | $ 0 | $ 0 |
Investment Partnerships and V_3
Investment Partnerships and Variable Interest Entities, Breakdown of Consolidated Entities and Investments in Partnerships Line by Accounting Method (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |
Dec. 31, 2018USD ($)Entity | Sep. 30, 2019USD ($)Entity | Sep. 30, 2018Entity | |
Investments In Affiliated and Unaffiliated Entities [Abstract] | |||
Investments in affiliated entities | $ | $ 100.1 | $ 124.7 | |
Investments in unaffiliated entities | $ | $ 18.6 | $ 19 | |
VIEs [Member] | |||
Entities Consolidated [Roll Forward] | |||
Entities consolidated at beginning of period | 1 | 1 | 1 |
Additional consolidated entities | 0 | 0 | 0 |
Deconsolidated entities | 0 | 0 | 0 |
Entities consolidated at end of period | 1 | 1 | 1 |
VOEs [Member] | |||
Entities Consolidated [Roll Forward] | |||
Entities consolidated at beginning of period | 5 | 5 | 3 |
Additional consolidated entities | 0 | 0 | 2 |
Deconsolidated entities | 0 | 0 | 0 |
Entities consolidated at end of period | 5 | 5 | 5 |
Investment Partnerships and V_4
Investment Partnerships and Variable Interest Entities, Net Impact by Line Item on the Condensed Consolidated Statements of Financial Position (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | |
Assets [Abstract] | ||||||||||
Cash and cash equivalents | $ 350,934 | $ 348,887 | $ 350,934 | $ 348,887 | $ 409,564 | |||||
Investments in securities (including GBL stock) | 304,036 | 304,036 | 229,960 | |||||||
Investments in affiliated registered investment companies | 152,453 | 152,453 | 142,135 | |||||||
Investments in partnerships | 143,658 | 143,658 | 118,729 | |||||||
Receivable from brokers | 23,702 | 23,702 | 24,629 | |||||||
Investment advisory fees receivable | 1,287 | 1,287 | 4,394 | |||||||
Other assets | 17,055 | 17,055 | 25,022 | |||||||
Total assets | 993,125 | 993,125 | 954,433 | |||||||
Liabilities and equity [Abstract] | ||||||||||
Securities sold, not yet purchased | 25,475 | 25,475 | 9,574 | |||||||
Accrued expenses and other liabilities | 29,154 | 29,154 | 28,811 | |||||||
Redeemable noncontrolling interests | 49,699 | 49,699 | 49,800 | |||||||
Total equity | 888,797 | 923,825 | 888,797 | 923,825 | $ 884,188 | $ 889,004 | 866,248 | $ 911,936 | $ 887,794 | $ 918,147 |
Total liabilities and equity | 993,125 | 993,125 | 954,433 | |||||||
Consolidated Statements of Income [Abstract] | ||||||||||
Total revenues | 5,118 | 4,666 | 14,591 | 14,165 | ||||||
Total expenses | 8,127 | 8,165 | 28,627 | 25,360 | ||||||
Operating loss | (3,009) | (3,499) | (14,036) | (11,195) | ||||||
Total other income/(expense), net | 10,155 | (4,581) | 51,902 | (9,740) | ||||||
Income/(loss) before income taxes | 7,146 | (8,080) | 37,866 | (20,935) | ||||||
Income tax expense/(benefit) | 1,554 | (858) | 7,468 | (4,204) | ||||||
Net income/(loss) | 5,592 | (7,222) | 30,398 | (16,731) | ||||||
Net income/(loss) attributable to noncontrolling interests | (359) | 157 | 2,232 | 1,053 | ||||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | 5,951 | (7,379) | 28,166 | (17,784) | ||||||
Consolidated Entities [Member] | ||||||||||
Assets [Abstract] | ||||||||||
Cash and cash equivalents | 4,433 | 4,433 | 13,490 | |||||||
Investments in securities (including GBL stock) | 136,907 | 136,907 | 98,196 | |||||||
Investments in affiliated registered investment companies | (60,123) | (60,123) | (50,871) | |||||||
Investments in partnerships | (21,430) | (21,430) | (19,390) | |||||||
Receivable from brokers | 15,338 | 15,338 | 16,631 | |||||||
Investment advisory fees receivable | (21) | (21) | (33) | |||||||
Other assets | 38 | 38 | 471 | |||||||
Total assets | 75,142 | 75,142 | 58,494 | |||||||
Liabilities and equity [Abstract] | ||||||||||
Securities sold, not yet purchased | 17,937 | 17,937 | 4,943 | |||||||
Accrued expenses and other liabilities | 7,506 | 7,506 | 3,751 | |||||||
Redeemable noncontrolling interests | 49,699 | 49,699 | 49,800 | |||||||
Total equity | 0 | 0 | 0 | |||||||
Total liabilities and equity | 75,142 | 75,142 | 58,494 | |||||||
Consolidated Statements of Income [Abstract] | ||||||||||
Total revenues | (181) | (17) | (526) | (50) | ||||||
Total expenses | (124) | 467 | 1,257 | 1,447 | ||||||
Operating loss | (57) | (484) | (1,783) | (1,497) | ||||||
Total other income/(expense), net | (302) | 641 | 4,015 | 2,550 | ||||||
Income/(loss) before income taxes | (359) | 157 | 2,232 | 1,053 | ||||||
Income tax expense/(benefit) | 0 | 0 | 0 | 0 | ||||||
Net income/(loss) | (359) | 157 | 2,232 | 1,053 | ||||||
Net income/(loss) attributable to noncontrolling interests | (359) | 157 | 2,232 | 1,053 | ||||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | 0 | 0 | 0 | 0 | ||||||
Prior to Consolidation [Member] | ||||||||||
Assets [Abstract] | ||||||||||
Cash and cash equivalents | 346,501 | 346,501 | 396,074 | |||||||
Investments in securities (including GBL stock) | 167,129 | 167,129 | 131,764 | |||||||
Investments in affiliated registered investment companies | 212,576 | 212,576 | 193,006 | |||||||
Investments in partnerships | 165,088 | 165,088 | 138,119 | |||||||
Receivable from brokers | 8,364 | 8,364 | 7,998 | |||||||
Investment advisory fees receivable | 1,308 | 1,308 | 4,427 | |||||||
Other assets | 17,017 | 17,017 | 24,551 | |||||||
Total assets | 917,983 | 917,983 | 895,939 | |||||||
Liabilities and equity [Abstract] | ||||||||||
Securities sold, not yet purchased | 7,538 | 7,538 | 4,631 | |||||||
Accrued expenses and other liabilities | 21,648 | 21,648 | 25,060 | |||||||
Redeemable noncontrolling interests | 0 | 0 | 0 | |||||||
Total equity | 888,797 | 888,797 | 866,248 | |||||||
Total liabilities and equity | 917,983 | 917,983 | $ 895,939 | |||||||
Consolidated Statements of Income [Abstract] | ||||||||||
Total revenues | 5,299 | 4,683 | 15,117 | 14,215 | ||||||
Total expenses | 8,251 | 7,698 | 27,370 | 23,913 | ||||||
Operating loss | (2,952) | (3,015) | (12,253) | (9,698) | ||||||
Total other income/(expense), net | 10,457 | (5,222) | 47,887 | (12,290) | ||||||
Income/(loss) before income taxes | 7,505 | (8,237) | 35,634 | (21,988) | ||||||
Income tax expense/(benefit) | 1,554 | (858) | 7,468 | (4,204) | ||||||
Net income/(loss) | 5,951 | (7,379) | 28,166 | (17,784) | ||||||
Net income/(loss) attributable to noncontrolling interests | 0 | 0 | 0 | 0 | ||||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ 5,951 | $ (7,379) | $ 28,166 | $ (17,784) |
Investment Partnerships and V_5
Investment Partnerships and Variable Interest Entities, Variable Interest Entities (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 |
Balances related to VIEs [Abstract] | |||
Cash and cash equivalents | $ 350,934 | $ 409,564 | $ 348,887 |
Receivable from brokers | 23,702 | 24,629 | |
Accrued expenses and other liabilities | (29,154) | (28,811) | |
Redeemable noncontrolling interests | (49,699) | (49,800) | |
VIEs [Member] | |||
Balances related to VIEs [Abstract] | |||
Cash and cash equivalents | 1,986 | 2,560 | |
Investments in securities | 9,255 | 7,253 | |
Receivable from brokers | 473 | 553 | |
Other assets | 0 | (11) | |
Accrued expenses and other liabilities | (41) | (31) | |
Redeemable noncontrolling interests | (447) | (419) | |
AC Group's net interests in consolidated VIE | $ 11,226 | $ 9,905 |
Fair Value, Assets and Liabilit
Fair Value, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Dec. 31, 2018 | ||
Liabilities [Abstract] | |||
Securities sold, not yet purchased | $ 25,475 | $ 9,574 | |
Unaffiliated [Member] | Minimum [Member] | |||
Liabilities [Abstract] | |||
Notice period for redeeming investments | 30 days | ||
Unaffiliated [Member] | Maximum [Member] | |||
Liabilities [Abstract] | |||
Notice period for redeeming investments | 95 days | ||
Investments Using NAV as Fair Value [Member] | |||
Assets [Abstract] | |||
Investments in partnerships | $ 131,082 | 105,020 | |
Liabilities [Abstract] | |||
Investment in partnerships, equity method | 8,319 | 9,429 | |
Recurring Basis [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 349,848 | 407,239 | |
Investments in partnerships | 143,658 | 118,729 | |
Total investments | 600,147 | 490,824 | |
Total assets at fair value | 949,995 | 898,063 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 25,475 | 9,574 | |
Recurring Basis [Member] | Common Stocks [Member] | |||
Liabilities [Abstract] | |||
Trading | 25,402 | 9,485 | |
Recurring Basis [Member] | Other [Member] | |||
Liabilities [Abstract] | |||
Trading | 73 | 89 | |
Recurring Basis [Member] | Investment in Securities (Including GBL Stock) [Member] | |||
Assets [Abstract] | |||
Total investments | 304,036 | 229,960 | |
Recurring Basis [Member] | Investment in Securities (Including GBL Stock) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 29,335 | 11,707 | |
Recurring Basis [Member] | Investment in Securities (Including GBL Stock) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Trading | 268,951 | 213,151 | |
Recurring Basis [Member] | Investment in Securities (Including GBL Stock) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 1,137 | 1,161 | |
Recurring Basis [Member] | Investment in Securities (Including GBL Stock) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Trading | 4,613 | 3,941 | |
Recurring Basis [Member] | Investment in Affiliated Registered Investment Companies [Member] | |||
Assets [Abstract] | |||
Total investments | 152,453 | 142,135 | |
Recurring Basis [Member] | Investment in Affiliated Registered Investment Companies [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Trading | 95,017 | 85,090 | |
Recurring Basis [Member] | Investment in Affiliated Registered Investment Companies [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 57,436 | 57,045 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 349,848 | 407,239 | |
Investments in partnerships | 0 | 0 | |
Total investments | 451,602 | 361,000 | |
Total assets at fair value | 801,450 | 768,239 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 25,402 | 9,485 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Stocks [Member] | |||
Liabilities [Abstract] | |||
Trading | 25,402 | 9,485 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | |||
Liabilities [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Securities (Including GBL Stock) [Member] | |||
Assets [Abstract] | |||
Total investments | 299,149 | 218,865 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Securities (Including GBL Stock) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 29,335 | 11,707 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Securities (Including GBL Stock) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Trading | 268,361 | 205,978 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Securities (Including GBL Stock) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 1,137 | 1,161 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Securities (Including GBL Stock) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Trading | 316 | 19 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Affiliated Registered Investment Companies [Member] | |||
Assets [Abstract] | |||
Total investments | 152,453 | 142,135 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Affiliated Registered Investment Companies [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Trading | 95,017 | 85,090 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Investment in Affiliated Registered Investment Companies [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 57,436 | 57,045 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 0 | 0 | |
Investments in partnerships | 0 | 0 | |
Total investments | 589 | 7,625 | |
Total assets at fair value | 589 | 7,625 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 73 | 89 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Common Stocks [Member] | |||
Liabilities [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | |||
Liabilities [Abstract] | |||
Trading | 73 | 89 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Securities (Including GBL Stock) [Member] | |||
Assets [Abstract] | |||
Total investments | 589 | 7,625 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Securities (Including GBL Stock) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Securities (Including GBL Stock) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Trading | 501 | 7,161 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Securities (Including GBL Stock) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Securities (Including GBL Stock) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Trading | 88 | 464 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Affiliated Registered Investment Companies [Member] | |||
Assets [Abstract] | |||
Total investments | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Affiliated Registered Investment Companies [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Investment in Affiliated Registered Investment Companies [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 0 | 0 | |
Investments in partnerships | 0 | 0 | |
Total investments | 4,298 | 3,470 | |
Total assets at fair value | 4,298 | 3,470 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Common Stocks [Member] | |||
Liabilities [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | |||
Liabilities [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Securities (Including GBL Stock) [Member] | |||
Assets [Abstract] | |||
Total investments | 4,298 | 3,470 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Securities (Including GBL Stock) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Securities (Including GBL Stock) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Trading | 89 | 12 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Securities (Including GBL Stock) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Securities (Including GBL Stock) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Trading | 4,209 | 3,458 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Affiliated Registered Investment Companies [Member] | |||
Assets [Abstract] | |||
Total investments | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Affiliated Registered Investment Companies [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Investment in Affiliated Registered Investment Companies [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | |||
Assets [Abstract] | |||
Cash equivalents | [1] | 0 | 0 |
Investments in partnerships | [1] | 139,401 | 114,449 |
Total investments | [1] | 139,401 | 114,449 |
Total assets at fair value | [1] | 139,401 | 114,449 |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Common Stocks [Member] | |||
Liabilities [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Other [Member] | |||
Liabilities [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | |||
Assets [Abstract] | |||
Total investments | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Affiliated Registered Investment Companies [Member] | |||
Assets [Abstract] | |||
Total investments | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Affiliated Registered Investment Companies [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Investments Using NAV as Fair Value [Member] | Investment in Affiliated Registered Investment Companies [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | [1] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | |||
Assets [Abstract] | |||
Cash equivalents | [2] | 0 | 0 |
Investments in partnerships | [2] | 4,257 | 4,280 |
Total investments | [2] | 4,257 | 4,280 |
Total assets at fair value | [2] | 4,257 | 4,280 |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Common Stocks [Member] | |||
Liabilities [Abstract] | |||
Trading | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Other [Member] | |||
Liabilities [Abstract] | |||
Trading | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | |||
Assets [Abstract] | |||
Total investments | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Trading | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Securities (Including GBL Stock) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Trading | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Affiliated Registered Investment Companies [Member] | |||
Assets [Abstract] | |||
Total investments | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Affiliated Registered Investment Companies [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Trading | [2] | 0 | 0 |
Recurring Basis [Member] | Other Assets Not Held at Fair Value [Member] | Investment in Affiliated Registered Investment Companies [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Trading | [2] | $ 0 | $ 0 |
[1] | Amounts include certain equity method investments in Investment Partnerships which qualify for investment company specialized accounting. These Investment Partnerships account for their financial assets and liabilities using fair value measures and, therefore, the Company's investment approximates fair value. At September 30, 2019 and December 31, 2018, investments in these Investment Partnerships were $131,082 and $105,020, respectively. In addition, certain investments in Investment Partnerships were held by a consolidated entity. At September 30, 2019 and December 31, 2018, these amounts were $8,319 and $9,429, respectively. None of these investments have been classified in the fair value hierarchy. | ||
[2] | Amounts include certain equity method investments which are not accounted for under a fair value measure. In accordance with GAAP, certain equity method investees do not account for both their financial assets and liabilities under fair value measures; therefore, the Company's investment in such equity method investees may not represent fair value. |
Fair Value, Changes in Level 3
Fair Value, Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||||
Beginning balance | $ 4,446 | $ 5,055 | $ 3,470 | $ 1,787 |
Consolidated fund | 0 | 984 | ||
Total gains/(losses) | (148) | 4 | 765 | (2,414) |
Purchases | 0 | 15 | 0 | 4,773 |
Sales | 0 | 0 | 0 | (31) |
Transfers | 0 | (527) | 63 | (552) |
Ending balance | 4,298 | 4,547 | 4,298 | 4,547 |
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to Level 3 assets still held as of the reporting date | (148) | 4 | 765 | (2,429) |
Unobservable Inputs Reconciliation, Transfers [Abstract] | ||||
Transfers into level 3 | 63 | |||
Transfers into level 1 | 580 | 605 | ||
Common Stocks [Member] | ||||
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||||
Beginning balance | 191 | 590 | 12 | 618 |
Consolidated fund | 0 | 0 | ||
Total gains/(losses) | (102) | 2 | 14 | (1) |
Purchases | 0 | 0 | 0 | 0 |
Sales | 0 | 0 | 0 | 0 |
Transfers | 0 | (580) | 63 | (605) |
Ending balance | 89 | 12 | 89 | 12 |
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to Level 3 assets still held as of the reporting date | (102) | 2 | 14 | 0 |
Other [Member] | ||||
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||||
Beginning balance | 4,255 | 4,465 | 3,458 | 1,169 |
Consolidated fund | 0 | 984 | ||
Total gains/(losses) | (46) | 2 | 751 | (2,413) |
Purchases | 0 | 15 | 0 | 4,773 |
Sales | 0 | 0 | 0 | (31) |
Transfers | 0 | 53 | 0 | 53 |
Ending balance | 4,209 | 4,535 | 4,209 | 4,535 |
Changes in net unrealized gain/(loss) included in Net gain/(loss) from investments related to Level 3 assets still held as of the reporting date | $ (46) | $ 2 | $ 751 | $ (2,429) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Taxes [Abstract] | ||||
Effective income tax rate | 21.70% | 10.60% | 19.70% | 20.10% |
Standard corporate tax rate | 21.00% | 21.00% | 21.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Basic [Abstract] | ||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ 5,951 | $ (7,379) | $ 28,166 | $ (17,784) |
Weighted average shares outstanding (in shares) | 22,514,000 | 22,979,000 | 22,550,000 | 23,187,000 |
Basic net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share (in dollars per share) | $ 0.26 | $ (0.32) | $ 1.25 | $ (0.77) |
Diluted [Abstract] | ||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ 5,951 | $ (7,379) | $ 28,166 | $ (17,784) |
Weighted average shares outstanding (in shares) | 22,514,000 | 22,979,000 | 22,550,000 | 23,187,000 |
Dilutive restricted stock awards (in shares) | 0 | 0 | 0 | 0 |
Total (in shares) | 22,514,000 | 22,979,000 | 22,550,000 | 23,187,000 |
Diluted net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share (in dollars per share) | $ 0.26 | $ (0.32) | $ 1.25 | $ (0.77) |
Restricted Stock [Member] | ||||
Earnings per Share [Abstract] | ||||
Shares outstanding (in shares) | 0 | 0 | 0 | 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | Nov. 30, 2015shares | Oct. 31, 2018USD ($)shares | Aug. 31, 2018USD ($)shares | Feb. 28, 2018USD ($)shares | Sep. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2019$ / shares | Sep. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018$ / shares | Mar. 31, 2018shares | Sep. 30, 2019USD ($)Vote$ / sharesshares | Sep. 30, 2018USD ($)$ / sharesshares | Dec. 31, 2018shares |
Stockholders' Equity [Abstract] | ||||||||||||
Shares outstanding (in shares) | 22,500,000 | 22,500,000 | 22,600,000 | |||||||||
Dividends [Abstract] | ||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | ||||||||||
Stock Repurchase Program [Abstract] | ||||||||||||
Shares repurchased during the period (in shares) | 36,000 | 20,000 | 89,000 | 668,000 | ||||||||
Average price per share of repurchased shares (in dollars per share) | $ / shares | $ 36.75 | $ 36.27 | $ 37.81 | $ 36.37 | ||||||||
Total investment amount | $ | $ 1,300 | $ 700 | $ 3,400 | $ 24,300 | ||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||||
Stock-based compensation expense | $ | $ 256 | $ 289 | $ 955 | $ 361 | ||||||||
Class A [Member] | ||||||||||||
Stockholders' Equity [Abstract] | ||||||||||||
Shares outstanding (in shares) | 3,473,355 | 3,473,355 | 3,530,752 | |||||||||
Dividends [Abstract] | ||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | ||||||||||
Exchange Offer [Abstract] | ||||||||||||
Number shares tendered upon completion of exchange offer (in shares) | 373,581 | 493,954 | 493,954 | |||||||||
Voting Rights [Abstract] | ||||||||||||
Number of votes per share | Vote | 1 | |||||||||||
Class B [Member] | ||||||||||||
Stockholders' Equity [Abstract] | ||||||||||||
Shares outstanding (in shares) | 19,022,918 | 19,022,918 | 19,054,404 | |||||||||
Dividends [Abstract] | ||||||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | ||||||||||
Voting Rights [Abstract] | ||||||||||||
Number of votes per share | Vote | 10 | |||||||||||
GAMCO [Member] | Class A [Member] | ||||||||||||
Exchange Offer [Abstract] | ||||||||||||
Number of shares received in exchange (in shares) | 1.9 | 1.35 | ||||||||||
Number of shares accepted for exchange (in shares) | 709,749 | 666,805 | ||||||||||
Value of shares in exchange offer | $ | $ 14,600 | $ 17,700 | ||||||||||
Restricted Stock Awards [Member] | ||||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||||
Granted (in shares) | 554,100 | |||||||||||
RSAs issued (in shares) | 0 | 0 | 0 | 0 | ||||||||
Restricted Stock Awards [Member] | GAMCO [Member] | ||||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||||
Number of GAMCO shares exchanged in connection with spin-off (in shares) | 554,100 | |||||||||||
Number of shares with accelerated vesting (in shares) | 0 | 0 | ||||||||||
Phantom RSAs [Member] | ||||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||||
Granted (in shares) | 172,800 | |||||||||||
Total value of shares granted | $ | $ 6,100 | |||||||||||
Shares outstanding (in shares) | 157,300 | 157,300 | ||||||||||
Unrecognized compensation cost | $ | $ 4,000 | $ 4,000 | ||||||||||
Weighted-average period for recognizing unrecognized compensation cost | 2 years 1 month 6 days | |||||||||||
Phantom RSAs [Member] | Vesting in Three Years from Date of Grant [Member] | ||||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||||
Awards vesting percentage | 30.00% | |||||||||||
Award vesting period | 3 years | |||||||||||
Phantom RSAs [Member] | Vesting in Five Years from Date of Grant [Member] | ||||||||||||
Stock Award and Incentive Plan [Abstract] | ||||||||||||
Awards vesting percentage | 70.00% | |||||||||||
Award vesting period | 5 years |
Goodwill and Identifiable Int_2
Goodwill and Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Goodwill [Abstract] | ||
Impairment charges on goodwill | $ 0 | $ 0 |
GCIA [Member] | ||
Goodwill [Abstract] | ||
Goodwill | $ 3,400 |
Related Party Transactions (Det
Related Party Transactions (Details) - Executive Chairman [Member] - Promissory Note [Member] - USD ($) $ in Millions | May 28, 2019 | Apr. 23, 2019 |
Related Party Transactions [Abstract] | ||
Debt instrument, face amount | $ 2.1 | |
Debt instrument, interest rate | 1.00% |
Subsequent Events (Details)
Subsequent Events (Details) | Nov. 08, 2019$ / shares | Oct. 31, 2019USD ($)shares | Oct. 11, 2019Subsidiaries | Nov. 08, 2019$ / sharesshares | Sep. 30, 2019$ / sharesshares | Jun. 30, 2019$ / shares | Sep. 30, 2018$ / sharesshares | Jun. 30, 2018$ / shares | Sep. 30, 2019$ / sharesshares | Sep. 30, 2018$ / sharesshares |
Financing Activities [Abstract] | ||||||||||
Shares repurchased during the period (in shares) | shares | 36,000 | 20,000 | 89,000 | 668,000 | ||||||
Average price per share of repurchased shares (in dollars per share) | $ / shares | $ 36.75 | $ 36.27 | $ 37.81 | $ 36.37 | ||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | ||||||||
Subsequent Event [Member] | ||||||||||
Financing Activities [Abstract] | ||||||||||
Shares repurchased during the period (in shares) | shares | 7,110 | |||||||||
Average price per share of repurchased shares (in dollars per share) | $ / shares | $ 36.39 | |||||||||
Dividend declared date | Nov. 8, 2019 | |||||||||
Dividends declared (in dollars per share) | $ / shares | $ 0.10 | |||||||||
Dividend payable date | Jan. 9, 2020 | |||||||||
Dividend record date | Dec. 26, 2019 | |||||||||
Subsequent Event [Member] | Morgan Group Holding, Co. [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Stock acquired (in shares) | shares | 50,000,000 | |||||||||
Ownership interest | 83.30% | |||||||||
Subsequent Event [Member] | Morgan Group Holding, Co. [Member] | Private Placement [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Stock acquired (in shares) | shares | 5,150,000 | |||||||||
Stock acquired, amount | $ | $ 515,000 | |||||||||
GBL [Member] | Subsequent Event [Member] | ||||||||||
Acquisition [Abstract] | ||||||||||
Number of wholly-owned subsidiaries involved in research service agreements | Subsidiaries | 2 |