Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
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 | Non-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 | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Address, State or Province | CT | |
Class A [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 3,404,541 | |
Class B [Member] | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 18,982,918 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
ASSETS | |||
Cash and cash equivalents | [1] | $ 358,594 | $ 348,588 |
Investments in securities (Including GBL stock with a value of $32.3 million and $57.2 million, respectively) | [1] | 222,807 | 300,357 |
Investments in affiliated registered investment companies | 121,734 | 159,311 | |
Investments in partnerships | [1] | 136,937 | 145,372 |
Receivable from brokers | [1] | 17,403 | 24,150 |
Investment advisory fees receivable | 1,311 | 9,582 | |
Receivable from affiliates | 627 | 4,369 | |
Deferred tax assets (including taxes receivable of $1,297 in 2020) | 22,128 | 2,004 | |
Goodwill | 3,519 | 3,519 | |
Other assets | [1] | 19,030 | 13,654 |
Total assets | 904,090 | 1,010,906 | |
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY | |||
Payable to brokers | 8,819 | 14,889 | |
Income taxes payable | 0 | 3,676 | |
Compensation payable | 5,665 | 20,246 | |
Securities sold, not yet purchased | [1] | 17,422 | 16,419 |
Payable to affiliates | 637 | 483 | |
Accrued expenses and other liabilities | [1] | 4,835 | 7,373 |
Total liabilities | 37,378 | 63,086 | |
Redeemable noncontrolling interests | [1] | 45,909 | 50,385 |
Equity: | |||
Preferred stock, $0.001 par value; 10,000,000 shares authorized; none issued and outstanding | 0 | 0 | |
Additional paid-in capital | 1,003,450 | 1,003,450 | |
Retained earnings/(Accumulated Deficit) | (74,056) | (701) | |
Treasury stock, at cost (3,198,664 and 3,116,873 shares outstanding, respectively) | (109,567) | (106,342) | |
Total Associated Capital Group, Inc. equity | 819,852 | 896,432 | |
Noncontrolling interests | 951 | 1,003 | |
Total equity | 820,803 | 897,435 | |
Total liabilities and equity | 904,090 | 1,010,906 | |
Class A [Member] | |||
Equity: | |||
Common stock | 6 | 6 | |
Class B [Member] | |||
Equity: | |||
Common stock | $ 19 | $ 19 | |
[1] | As of March, 31, 2020 and December 31, 2019, cash and cash equivalents, investments in securities, investment in partnerships, receivable from broker, other assets, securities sold, not yet purchased, accrued expenses and other liabilities and redeemable noncontrolling interests include amounts related to consolidated variable interest entities ("VIEs"). |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION UNAUDITED (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Investment in GBL stock | $ 32,300 | $ 57,200 |
Taxes receivable | $ 1,297 | |
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) | 22,400,000 | 22,500,000 |
Treasury stock, shares outstanding (in shares) | 3,198,664 | 3,116,873 |
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) | 6,589,254 | 6,569,254 |
Common stock, shares outstanding (in shares) | 3,390,590 | 3,452,381 |
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) | 19,002,918 | 19,022,918 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF INCOME UNAUDITED - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues | ||
Total revenues | $ 4,369 | $ 4,652 |
Expenses | ||
Compensation | 3,375 | 6,311 |
Management fee | 0 | 3,260 |
Other operating expenses | 2,089 | 2,957 |
Total expenses | 5,464 | 12,528 |
Operating loss | (1,095) | (7,876) |
Other income (expense) | ||
Net gain/(loss) from investments | (102,090) | 34,979 |
Interest and dividend income | 2,310 | 3,786 |
Interest expense | (49) | (44) |
Shareholder-designated contribution | (227) | 0 |
Total other income (expense), net | (100,056) | 38,721 |
Income/(loss) before income taxes | (101,151) | 30,845 |
Income tax expense/(benefit) | (23,799) | 6,191 |
Net income/(loss) | (77,352) | 24,654 |
Net income/(loss) attributable to noncontrolling interests | (3,997) | 1,507 |
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ (73,355) | $ 23,147 |
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share: | ||
Basic (in dollars per share) | $ (3.27) | $ 1.02 |
Diluted (in dollars per share) | $ (3.27) | $ 1.02 |
Weighted average shares outstanding: | ||
Basic (in shares) | 22,441 | 22,584 |
Diluted (in shares) | 22,441 | 22,584 |
Investment Advisory and Incentive Fees [Member] | ||
Revenues | ||
Total revenues | $ 2,700 | $ 2,733 |
Institutional Research Services [Member] | ||
Revenues | ||
Total revenues | 1,374 | 1,913 |
Other [Member] | ||
Revenues | ||
Total revenues | $ 295 | $ 6 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||
Net income/(loss) | $ (77,352) | $ 24,654 |
Less: Comprehensive income/(loss) attributable to noncontrolling interests | (3,997) | 1,507 |
Comprehensive income/(loss) attributable to Associated Capital Group, Inc. | $ (73,355) | $ 23,147 |
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] | Treasury Stock [Member] | Noncontrolling Interest [Member] | Total | Redeemable Noncontrolling Interests [Member] |
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 | |
Balance at Dec. 31, 2019 | 25 | (701) | 1,003,450 | (106,342) | $ 1,003 | 897,435 | 50,385 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Redemptions of noncontrolling interests | 0 | 0 | 0 | 0 | 0 | 0 | (531) |
Net income/(loss) | 0 | (73,355) | 0 | 0 | (52) | (73,407) | (3,945) |
Purchase of treasury stock | 0 | 0 | 0 | (3,225) | 0 | (3,225) | 0 |
Balance at Mar. 31, 2020 | $ 25 | $ (74,056) | $ 1,003,450 | $ (109,567) | $ 951 | $ 820,803 | $ 45,909 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS UNAUDITED - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | |||
Operating activities | ||||
Net income (loss) | $ (77,352) | $ 24,654 | ||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||
Equity in net (gains) losses from partnerships | 10,676 | (3,838) | ||
Depreciation and amortization | 802 | 6 | ||
Deferred income taxes | (21,186) | 0 | ||
Donated securities | 281 | 944 | ||
Unrealized (gains) losses on securities | 64,337 | (20,047) | ||
(Increase) decrease in assets: | ||||
Investments in securities | 50,246 | (35,098) | ||
Investments in partnerships: | ||||
Contributions to partnerships | (3,429) | (4,071) | ||
Distributions from partnerships | 1,266 | 500 | ||
Receivable from affiliates | 3,743 | 578 | ||
Receivable from brokers | 6,748 | (2,351) | ||
Investment advisory fees receivable | 8,271 | 3,206 | ||
Income taxes receivable | 1,062 | 2,551 | ||
Other assets | 5,693 | 9,021 | ||
Increase (decrease) in liabilities: | ||||
Payable to brokers | (6,070) | 11,912 | ||
Income taxes payable and deferred tax liabilities, net | (3,676) | 3,645 | ||
Payable to affiliates | 154 | 620 | ||
Compensation payable | (14,582) | (3,877) | ||
Accrued expenses and other liabilities | (367) | (1,060) | ||
Total adjustments | 103,969 | (37,359) | ||
Net cash provided by (used in) operating activities | 26,617 | (12,705) | ||
Investing activities | ||||
Purchases of securities | (193) | (342) | ||
Proceeds from sales of securities | 321 | 2,108 | ||
Return of capital on securities | 349 | 571 | ||
Purchase of building | (11,084) | 0 | ||
Net cash (used in) provided by investing activities | (10,607) | 2,337 | ||
Financing activities | ||||
Redemptions of redeemable noncontrolling interests | (531) | (526) | ||
Dividends paid | (2,248) | (2,259) | ||
Purchase of treasury stock | (3,225) | (391) | ||
Net cash used in financing activities | (6,004) | (3,176) | ||
Net increase (decrease) in cash and cash equivalents | 10,006 | (13,544) | ||
Cash and cash equivalents at beginning of period | [1] | 348,588 | ||
Cash and cash equivalents at beginning of period | 409,764 | |||
Cash and cash equivalents at end of period | 358,794 | 396,220 | ||
Supplemental disclosures of cash flow information: | ||||
Cash paid for interest | 49 | 44 | ||
Cash paid for taxes | 0 | 0 | ||
Reconciliation to cash, cash equivalents and restricted cash | ||||
Cash and cash equivalents | 348,588 | [1] | 396,020 | |
Restricted cash included in receivable from brokers | 200 | 200 | ||
Cash and cash equivalents at end of period | $ 358,794 | $ 396,220 | ||
[1] | As of March, 31, 2020 and December 31, 2019, cash and cash equivalents, investments in securities, investment in partnerships, receivable from broker, other assets, securities sold, not yet purchased, accrued expenses and other liabilities and redeemable noncontrolling interests include amounts related to consolidated variable interest entities ("VIEs"). |
Basis of Presentation and Signi
Basis of Presentation and Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
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. Organization 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. 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 underwriting and institutional research services through G.research, LLC (“G.research”), an indirect majority-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”). We may make direct investments in operating businesses using a variety of techniques and structures. We added Gabelli Special Purpose Acquisition Vehicles (“SPAC”) in 2018. Gabelli Value for Italy (VALU), our initial vehicle launched and listed on the Italian Borsa, approached its second anniversary at the apex of the pandemic in Italy. In light of this challenge, the board voted to commence liquidation. The VALU effort successfully canvassed private company opportunities in Italy, with deal flow expanding throughout Europe. We believe the platform is in place to further expand our direct investment efforts across the European continent. Associated Capital Group, Inc, Spin-Off 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”). Morgan Group Holding Co. Merger and Spin-Off On October 31, 2019, the Company closed on a transaction whereby Morgan Group Holding Co., (“Morgan Group”) a company that trades in the over the counter market under the symbol “MGHL” and under common control of AC’s majority shareholder, acquired all of the Company’s interest in G.research for 50,000,000 shares of Morgan Group common 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, the Company has an 83.3% ownership interest in Morgan Group and consolidates the entity, which includes G.research. The transaction has been accounted for pursuant to ASC 805-50, Transactions Between Entities Under Common Control. A common-control transaction is similar to a business combination, however, does not meet the definition of a business combination, because there is no change in control over the entity by the parent. Therefore, the accounting and reporting for a transaction between entities under common control is outside the scope of the business combinations guidance in ASC 805-10, ASC 805-20, and ASC 805-30 and is addressed in ASC 805-50. For transactions between entities under common control, there is no change in basis in the net assets received and therefore they are recorded at their historical cost On March 16, 2020, the Company announced that its Board of Directors has approved the spin-off of Morgan Group to AC’s shareholders. AC will distribute to its shareholders on a pro rata basis the 50,000,000 shares of Morgan Group that it owns upon close of the spin-off. As of March 31, 2020 the book value of Morgan Group is $5.8 million in the aggregate and $0.10 per share. On May 5, 2020, the Morgan Group board approved a reverse stock split of the issued and outstanding shares of their common stock, par value $0.01 per share, in a ratio of 1‑for‑100. 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, 2019. 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) In June 2016, the FASB issued ASU 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) 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 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
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. Institutional Research Services. These revenues consist of: a. Brokerage Commissions – Acting as agent, G.research buys and sells securities on behalf of its customers. 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. G.research recognizes commission revenue when the related securities transactions are executed on trade date. G.research believes that the performance obligation is satisfied on trade date because that is when the underlying financial instrument or purchaser is identified, the pricing is agreed upon and the risks and rewards of ownership have been 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. b. Hard dollar payments – G.research provides research services to unrelated parties, for which direct payment is received. G.research 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, which is considered the period over which G.research satisfies its performance obligation. For payments where no research contract exists, revenue is not recognized until agreement is reached with the client at which time the performance obligation is considered to have been met and revenue is recognized. c. Selling concessions –G.research 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 G.research and the underwriter. Revenue is recognized on the trade date (the date on which the G.research purchases the securities from the issuer) for the portion G.research is contracted to buy. G.research believes that the trade date is the appropriate point in time to recognize revenue for securities underwriting transactions as there are no significant actions G.research needs to take subsequent to this date, and the issuer obtains the control and benefit of the capital markets offering at this point. Selling concessions earned are typically collected from the clearing brokers utilized by G.research on a daily or weekly basis. d. Sales manager fees – G.research 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 G.research, the funds and the funds’ investment adviser. G.research recognizes sales manager fees upon sale of the related closed-end funds. Sales manager fees earned are fixed and 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 month periods ended March 31, 2020 and 2019, respectively (in thousands): Three months ended March 31, 2020 2019 Investment advisory and incentive fees Asset-based advisory fees $ 1,820 $ 1,724 Performance-based advisory fees - 13 Sub-advisory fees 880 996 2,700 2,733 Institutional research services Hard dollar payments 102 487 Commissions 937 1,426 Sales manager fees 335 - 1,374 1,913 Other Underwriting fees 30 - Miscellaneous 265 6 295 6 Total $ 4,369 $ 4,652 |
Investment in Securities
Investment in Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investment in Securities [Abstract] | |
Investment in Securities | C. Investment in Securities Investments in securities at March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Debt - Trading Securities Government obligations $ - $ - $ 28,428 $ 29,037 Equity Securities Common stocks 284,446 213,374 271,627 262,562 Mutual funds 597 768 1,207 2,196 Other investments 11,796 8,665 7,847 6,562 Total investments in securities $ 296,839 $ 222,807 $ 309,109 $ 300,357 Securities sold, not yet purchased at March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, 2020 December 31, 2019 Proceeds Fair Value Proceeds Fair Value Equity securities Common stocks $ 20,314 $ 16,656 $ 13,863 $ 16,300 Other investments 53 766 13 119 Total securities sold, not yet purchased $ 20,367 $ 17,422 $ 13,876 $ 16,419 Investments in affiliated registered investment companies at March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Equity securities Closed-end funds $ 75,619 $ 68,696 $ 75,646 $ 99,834 Mutual funds 48,708 53,038 48,348 59,477 Total investments in affiliated registered investment companies $ 124,327 $ 121,734 $ 123,994 $ 159,311 The Company recognizes all equity derivatives as either assets or liabilities measured at fair value and includes them in either investment in securities or securities sold, not yet purchased on the consolidated statements of financial condition. From time to time, the Company and/or consolidated funds will enter into hedging transactions to manage their exposure to foreign currencies and equity prices related to their proprietary investments. At March 31, 2020 and December 31, 2019 we held derivative contracts on 0.5 million and 3.4 million equity shares, respectively, that are included in investments in securities or securities sold, not yet purchased on the consolidated statements of financial condition as shown in the table below. We had one foreign exchange contracts outstanding at March 31, 2020 and two at December 31, 2019. Except for the foreign exchange contracts 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 consolidated statements of income and included in investments in securities, securities sold, not yet purchased, or receivable from or payable to brokers on the consolidated statements of financial condition. The following table identifies the fair values of all derivatives and foreign currency positions held by the Company (in thousands): Asset Derivatives Liability Derivatives Statement of Fair Value Statement of Fair Value Financial Condition Location March 31, 2020 December 31, 2019 Financial Condition Location March 31, 2020 December 31, 2019 Derivatives designated as hedging instruments under FASB ASC 815-20 Foreign exchange contracts Receivable from brokers $ 58 $ 23 Payable to brokers $ - $ - Derivatives not designated as hedging instruments under FASB ASC 815-20 Equity contracts Investments in securities $ 76 $ 291 Securities sold, not yet purchased $ 766 $ 119 Total derivatives $ 134 $ 314 $ 766 $ 119 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 March 31, 2020 2019 Foreign exchange contracts Net gain/(loss) from investments $ 51 $ 81 Equity contracts Net gain/(loss) from investments (86 ) (2,022 ) Total $ (35 ) $ (1,941 ) The Company is a party to enforceable master netting arrangements for swaps entered into with major U.S. financial institutions as part of its investment strategy. 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 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 Gross Amounts Offset in the Net Amounts of Assets Presented Gross Amounts Not Offset in the Statements of Financial Condition Recognized Assets Statements of Financial Condition in the Statements of Financial Condition Financial Instruments Cash Collateral Received Net Amount Swaps: (In thousands) March 31, 2020 $ 76 $ - $ 76 $ (76 ) $ - $ - December 31, 2019 291 - 291 (119 ) - 172 Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented Gross Amounts Not Offset in the Statements of Financial Condition Recognized Liabilities Statements of Financial Condition in the Statements of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount Swaps: (In thousands) March 31, 2020 $ 766 $ - $ 766 $ (76 ) $ - $ 690 December 31, 2019 119 - 119 (119 ) - - |
Investment Partnerships and Var
Investment Partnerships and Variable Interest Entities | 3 Months Ended |
Mar. 31, 2020 | |
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 in which the Company had investments totaling $117.9 million and $124.8 million at March 31, 2020 and December 31, 2019, respectively, and whose underlying assets consist primarily of marketable securities (“Affiliated Entities). We also had investments in unaffiliated partnerships, offshore funds and other entities of $19.1 million and $20.5 million at March 31, 2020 and December 31, 2019, respectively (“Unaffiliated Entities”). We evaluate each entity to determine its appropriate accounting treatment and disclosure. Certain of the Affiliated Entities, and none of the Unaffiliated Entities, are consolidated. The value of entities where consolidation is not deemed appropriate consist of equity method investments which are included in investments in partnerships on 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 consolidated statements of income. The following table includes the net impact by line item on the condensed consolidated statements of financial condition for the consolidated entities (in thousands): March 31, 2020 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents $ 342,127 $ 16,467 $ 358,594 Investments in securities (including GBL stock) 127,360 95,447 222,807 Investments in affiliated investment companies 169,133 (47,399 ) 121,734 Investments in partnerships 154,669 (17,732 ) 136,937 Receivable from brokers 4,788 12,615 17,403 Investment advisory fees receivable 1,334 (23 ) 1,311 Other assets 45,172 132 45,304 Total assets $ 844,583 $ 59,507 $ 904,090 Liabilities and equity Securities sold, not yet purchased $ 6,964 $ 10,458 $ 17,422 Accrued expenses and other liabilities 16,816 3,140 19,956 Redeemable noncontrolling interests - 45,909 45,909 Total equity 820,803 - 820,803 Total liabilities and equity $ 844,583 $ 59,507 $ 904,090 December 31, 2019 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents $ 335,421 $ 13,167 $ 348,588 Investments in securities (including GBL stock) 182,673 117,684 300,357 Investments in affiliated investment companies 211,024 (51,713 ) 159,311 Investments in partnerships 167,781 (22,409 ) 145,372 Receivable from brokers 7,759 16,391 24,150 Investment advisory fees receivable 9,604 (22 ) 9,582 Other assets 23,517 29 23,546 Total assets $ 937,779 $ 73,127 $ 1,010,906 Liabilities and equity Securities sold, not yet purchased $ 4,625 $ 11,794 $ 16,419 Accrued expenses and other liabilities 35,718 10,949 46,667 Redeemable noncontrolling interests 1 50,384 50,385 Total equity 897,435 - 897,435 Total liabilities and equity $ 937,779 $ 73,127 $ 1,010,906 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 March 31, 2020 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 3,725 $ 644 $ 4,369 Total expenses 5,493 198 5,464 Operating loss (1,768 ) 446 (1,095 ) Total other income, net (95,438 ) (4,391 ) (100,056 ) Income before income taxes (97,206 ) (3,945 ) (101,151 ) Income tax expense (23,799 ) - (23,799 ) Net income before NCI (73,407 ) (3,945 ) (77,352 ) Net income attributable to noncontrolling interests (52 ) (3,945 ) (3,997 ) Net income $ (73,355 ) $ - $ (73,355 ) Three Months Ended March 31, 2019 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 4,817 $ (165 ) $ 4,652 Total expenses 11,462 1,066 12,528 Operating loss (6,645 ) (1,231 ) (7,876 ) Total other income/(expense), net 35,983 2,738 38,721 Loss before income taxes 29,338 1,507 30,845 Income tax benefit 6,191 - 6,191 Net loss before NCI 23,147 1,507 24,654 Net loss attributable to noncontrolling interests - 1,507 1,507 Net loss $ 23,147 $ - $ 23,147 Variable Interest Entities With respect to each 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 VIEs that are consolidated and included on the condensed consolidated statements of financial condition as well as the Company’s net interest in these VIEs (in thousands): March 31, 2020 December 31, 2019 Cash and cash equivalents $ 2,384 $ 2,224 Investments in securities 13,570 18,454 Receivable from brokers 2,097 2,601 Investments in partnerships and affiliates 8,120 8,363 Accrued expenses and other liabilities (198 ) (329 ) Redeemable noncontrolling interests (8,419 ) (9,592 ) AC Group’s net interests in consolidated VIEs $ 17,554 $ 21,721 |
Fair Value
Fair Value | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 and indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The following tables present assets and liabilities measured at fair value on a recurring basis as of the dates specified (in thousands): March 31, 2020 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 354,434 $ - $ - $ 354,434 Investments in securities (including GBL stock): Trading - Gov’t obligations - - - - Common stocks 206,694 6,644 36 213,374 Mutual funds 768 - - 768 Other 3,460 1,310 3,895 8,665 Total investments in securities 210,922 7,954 3,931 222,807 Investments in affiliated registered investment companies: Closed-end funds 68,696 - - 68,696 Mutual funds 53,038 - - 53,038 Total investments in affiliated registered investment companies 121,734 - - 121,734 Total investments held at fair value 332,656 7,954 3,931 344,541 Total assets at fair value $ 687,090 $ 7,954 $ 3,931 $ 698,975 Liabilities Common stocks $ 16,656 $ - $ - $ 16,656 Other - 766 - 766 Securities sold, not yet purchased $ 16,656 $ 766 $ - $ 17,422 December 31, 2019 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 343,428 $ - $ - $ 343,428 Investments in securities (including GBL stock): Trading - Gov’t obligations 29,037 - - 29,037 Common stocks 257,520 4,444 89 262,562 Mutual funds 2,196 - - 2,196 Other 2,428 509 4,134 6,562 Total investments in securities 291,181 4,953 4,223 300,357 Investments in affiliated registered investment companies: Closed-end funds 99,834 - - 99,834 Mutual funds 59,477 - - 59,477 Total investments in affiliated registered investment companies 159,311 - - 159,311 Total investments held at fair value 450,492 4,953 4,223 459,668 Total assets at fair value $ 793,920 $ 4,953 $ 4,223 $ 803,096 Liabilities Common stocks $ 16,300 $ - $ - $ 16,300 Other - 119 - 119 Securities sold, not yet purchased $ 16,300 $ 119 $ - $ 16,419 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 March 31, 2020 Three months ended March 31, 2019 Common Stocks Other Total Common Stocks Other Total Beginning balance $ 89 $ 4,134 $ 4,223 $ 12 $ 3,458 $ 3,470 Consolidated fund - - - - - - Total gains/(losses) (53 ) (130 ) (183 ) (42 ) (147 ) (189 ) Purchases - - - - - - Sales - - - - - - Transfers - (109 ) (109 ) 63 - 63 Ending balance $ 36 $ 3,895 $ 3,931 $ 33 $ 3,311 $ 3,344 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 $ (53 ) $ (130 ) $ (183 ) $ (42 ) $ (147 ) $ (189 ) 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 March 31, 2020, the Company transferred investments with values of approximately 109,000 from level 3 to level 1 due to the availability of observable inputs. During the three months ended March 31, 2019, the Company transferred investments with values of approximately $63,000 from level 1 to level 3 due to the unavailability of observable inputs. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | F. Income Taxes The effective tax rate (“ETR”) for the three months ended March 31, 2020 and March 31, 2019 was 23.5% and 20.1%, respectively. The ETR in the first quarter of 2020 differs from the standard corporate tax rate of 21% primarily due to state and local taxes (net of federal benefit) and the rate differential on the carryback of a net operating loss. The ETR in the first quarter of 2019 differs from the standard corporate tax rate of 21% primarily due to state and local taxes (net of federal benefit) and the benefit of (a) the donation of appreciated securities and (b) the dividends received deduction. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | G. Earnings Per Share Basic earnings per share is computed by dividing net income/(loss) 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) attributable to our shareholders by the weighted average number of shares outstanding during the period because there are no dilutive securities outstanding during the periods presented. The computations of basic and diluted net income/(loss) per share are as follows (in thousands, except per share data): Three Months Ended March 31, (amounts in thousands, except per share amounts) 2020 2019 Basic: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ (73,355 ) $ 23,147 Weighted average shares outstanding 22,441 22,584 Basic net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ (3.27 ) $ 1.02 Diluted: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ (73,355 ) $ 23,147 Weighted average share outstanding 22,441 22,584 Diluted net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ (3.27 ) $ 1.02 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | H. Stockholders’ Equity Shares outstanding were 22.4 million and 22.5 million at March 31, 2020 and December 31, 2019, respectively. Dividends There were no dividends declared during each of the three months ended March 31, 2020 and 2019. Stock Repurchase Program For the three months ended March 31, 2020 and 2019, the Company repurchased approximately 82 thousand and 10 thousand shares at an average price of $39.43 per share and $40.03 per share for a total investment of $3.2 million and $0.4 million, respectively. 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 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. Holders of each share class, however, are not eligible to vote on matters relating exclusively to the other share class. Stock Award and Incentive Plan The Company maintains one stock award and incentive plan (the “Plan”) approved by the shareholders on May 3, 2016, which is designed to provide incentives to attract and retain individuals key to the success of AC through direct or indirect ownership of our common stock. Benefits under the Plan may be granted in any one or a combination of stock options, stock appreciation rights, restricted stock, restricted stock units, stock awards, dividend equivalents and other stock or cash-based awards. A maximum of 2 million shares of Class A Stock have been reserved for issuance under the Plan by the Compensation Committee of the Board of Directors (the “Compensation Committee”) which is responsible for administering the Plan. Under the Plan, the Compensation Committee may grant RSAs and either incentive or nonqualified stock options with a term not to exceed ten years from the grant date and at an exercise price that it may determine. Through March 31, 2020, approximately 700,000 shares have been awarded under the Plan leaving approximately 1.3 million shares for future grants. 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 of 2018, 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. 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. Based on the closing price of the Company’s Class A Common Stock on March 31, 2020 and December 31, 2019, the total liability recorded by the Company in compensation payable as of March 31, 2020 and December 31, 2019, with respect to the Phantom RSAs was $1.2 million and $2.0 million, respectively. For the three month periods ended March 31, 2020 and 2019, the Company recorded approximately $(0.8) million and $0.4 million in stock-based compensation expense, respectively. This expense is included in compensation expense in the consolidated statements of income. As of March 31, 2020, there were 96,650 Phantom RSAs outstanding. The unrecognized compensation cost related to these was $1.2 million which is expected to be recognized over a weighted-average period of 2.1 years. As of December 31, 2019, 119,650 awarded but unvested Phantom RSAs were outstanding. |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Identifiable Intangible Assets [Abstract] | |
Goodwill and Identifiable Intangible Assets | I. Goodwill and Identifiable Intangible Assets At March 31, 2020, 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 March 31, 2020 or March 31, 2019, and as such there was no impairment analysis performed or charge recorded. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020. 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 March 31, 2020 and December 31, 2019, 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. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | L. Subsequent Events During the period from April 1, 2020 to May 11, 2020, the Company repurchased 16,749 shares at an average price of $35.08 per share. On May 5, 2020, the Company declared a semi-annual dividend of $0.10 per share payable June 30, 2020 to shareholders of record on June 16, 2020. In early April, an institutional investor redeemed approximately $115 million of its separately managed account leaving it with a balance of approximately $53.6 million at month end. |
Basis of Presentation and Sig_2
Basis of Presentation and Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Basis of Presentation and Significant Accounting Policies [Abstract] | |
Organization | Organization 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. 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 underwriting and institutional research services through G.research, LLC (“G.research”), an indirect majority-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”). We may make direct investments in operating businesses using a variety of techniques and structures. We added Gabelli Special Purpose Acquisition Vehicles (“SPAC”) in 2018. Gabelli Value for Italy (VALU), our initial vehicle launched and listed on the Italian Borsa, approached its second anniversary at the apex of the pandemic in Italy. In light of this challenge, the board voted to commence liquidation. The VALU effort successfully canvassed private company opportunities in Italy, with deal flow expanding throughout Europe. We believe the platform is in place to further expand our direct investment efforts across the European continent. |
Spin-offs and Mergers | Associated Capital Group, Inc, Spin-Off 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”). Morgan Group Holding Co. Merger and Spin-Off On October 31, 2019, the Company closed on a transaction whereby Morgan Group Holding Co., (“Morgan Group”) a company that trades in the over the counter market under the symbol “MGHL” and under common control of AC’s majority shareholder, acquired all of the Company’s interest in G.research for 50,000,000 shares of Morgan Group common 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, the Company has an 83.3% ownership interest in Morgan Group and consolidates the entity, which includes G.research. The transaction has been accounted for pursuant to ASC 805-50, Transactions Between Entities Under Common Control. A common-control transaction is similar to a business combination, however, does not meet the definition of a business combination, because there is no change in control over the entity by the parent. Therefore, the accounting and reporting for a transaction between entities under common control is outside the scope of the business combinations guidance in ASC 805-10, ASC 805-20, and ASC 805-30 and is addressed in ASC 805-50. For transactions between entities under common control, there is no change in basis in the net assets received and therefore they are recorded at their historical cost On March 16, 2020, the Company announced that its Board of Directors has approved the spin-off of Morgan Group to AC’s shareholders. AC will distribute to its shareholders on a pro rata basis the 50,000,000 shares of Morgan Group that it owns upon close of the spin-off. As of March 31, 2020 the book value of Morgan Group is $5.8 million in the aggregate and $0.10 per share. On May 5, 2020, the Morgan Group board approved a reverse stock split of the issued and outstanding shares of their common stock, par value $0.01 per share, in a ratio of 1‑for‑100. |
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, 2019. |
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) In June 2016, the FASB issued ASU 2016-13, Accounting for Financial Instruments - Credit Losses (Topic 326) 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 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue [Abstract] | |
Revenues by Type | Total revenues by type were as follows for the three month periods ended March 31, 2020 and 2019, respectively (in thousands): Three months ended March 31, 2020 2019 Investment advisory and incentive fees Asset-based advisory fees $ 1,820 $ 1,724 Performance-based advisory fees - 13 Sub-advisory fees 880 996 2,700 2,733 Institutional research services Hard dollar payments 102 487 Commissions 937 1,426 Sales manager fees 335 - 1,374 1,913 Other Underwriting fees 30 - Miscellaneous 265 6 295 6 Total $ 4,369 $ 4,652 |
Investment in Securities (Table
Investment in Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment in Securities [Abstract] | |
Investments in Securities | Investments in securities at March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Debt - Trading Securities Government obligations $ - $ - $ 28,428 $ 29,037 Equity Securities Common stocks 284,446 213,374 271,627 262,562 Mutual funds 597 768 1,207 2,196 Other investments 11,796 8,665 7,847 6,562 Total investments in securities $ 296,839 $ 222,807 $ 309,109 $ 300,357 |
Securities Sold, Not Yet Purchased | Securities sold, not yet purchased at March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, 2020 December 31, 2019 Proceeds Fair Value Proceeds Fair Value Equity securities Common stocks $ 20,314 $ 16,656 $ 13,863 $ 16,300 Other investments 53 766 13 119 Total securities sold, not yet purchased $ 20,367 $ 17,422 $ 13,876 $ 16,419 |
Investments in Affiliated Registered Investment Companies | Investments in affiliated registered investment companies at March 31, 2020 and December 31, 2019 consisted of the following (in thousands): March 31, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Equity securities Closed-end funds $ 75,619 $ 68,696 $ 75,646 $ 99,834 Mutual funds 48,708 53,038 48,348 59,477 Total investments in affiliated registered investment companies $ 124,327 $ 121,734 $ 123,994 $ 159,311 |
Fair Values of All Derivatives | The following table identifies the fair values of all derivatives and foreign currency positions held by the Company (in thousands): Asset Derivatives Liability Derivatives Statement of Fair Value Statement of Fair Value Financial Condition Location March 31, 2020 December 31, 2019 Financial Condition Location March 31, 2020 December 31, 2019 Derivatives designated as hedging instruments under FASB ASC 815-20 Foreign exchange contracts Receivable from brokers $ 58 $ 23 Payable to brokers $ - $ - Derivatives not designated as hedging instruments under FASB ASC 815-20 Equity contracts Investments in securities $ 76 $ 291 Securities sold, not yet purchased $ 766 $ 119 Total derivatives $ 134 $ 314 $ 766 $ 119 |
Gains and Losses of All Derivatives and Foreign Currency Positions Held | 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 March 31, 2020 2019 Foreign exchange contracts Net gain/(loss) from investments $ 51 $ 81 Equity contracts Net gain/(loss) from investments (86 ) (2,022 ) Total $ (35 ) $ (1,941 ) |
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 Gross Amounts Offset in the Net Amounts of Assets Presented Gross Amounts Not Offset in the Statements of Financial Condition Recognized Assets Statements of Financial Condition in the Statements of Financial Condition Financial Instruments Cash Collateral Received Net Amount Swaps: (In thousands) March 31, 2020 $ 76 $ - $ 76 $ (76 ) $ - $ - December 31, 2019 291 - 291 (119 ) - 172 Gross Amounts of Gross Amounts Offset in the Net Amounts of Liabilities Presented Gross Amounts Not Offset in the Statements of Financial Condition Recognized Liabilities Statements of Financial Condition in the Statements of Financial Condition Financial Instruments Cash Collateral Pledged Net Amount Swaps: (In thousands) March 31, 2020 $ 766 $ - $ 766 $ (76 ) $ - $ 690 December 31, 2019 119 - 119 (119 ) - - |
Investment Partnerships and V_2
Investment Partnerships and Variable Interest Entities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment Partnerships and Variable Interest Entities [Abstract] | |
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): March 31, 2020 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents $ 342,127 $ 16,467 $ 358,594 Investments in securities (including GBL stock) 127,360 95,447 222,807 Investments in affiliated investment companies 169,133 (47,399 ) 121,734 Investments in partnerships 154,669 (17,732 ) 136,937 Receivable from brokers 4,788 12,615 17,403 Investment advisory fees receivable 1,334 (23 ) 1,311 Other assets 45,172 132 45,304 Total assets $ 844,583 $ 59,507 $ 904,090 Liabilities and equity Securities sold, not yet purchased $ 6,964 $ 10,458 $ 17,422 Accrued expenses and other liabilities 16,816 3,140 19,956 Redeemable noncontrolling interests - 45,909 45,909 Total equity 820,803 - 820,803 Total liabilities and equity $ 844,583 $ 59,507 $ 904,090 December 31, 2019 Prior to Consolidation Consolidated Entities As Reported Assets Cash and cash equivalents $ 335,421 $ 13,167 $ 348,588 Investments in securities (including GBL stock) 182,673 117,684 300,357 Investments in affiliated investment companies 211,024 (51,713 ) 159,311 Investments in partnerships 167,781 (22,409 ) 145,372 Receivable from brokers 7,759 16,391 24,150 Investment advisory fees receivable 9,604 (22 ) 9,582 Other assets 23,517 29 23,546 Total assets $ 937,779 $ 73,127 $ 1,010,906 Liabilities and equity Securities sold, not yet purchased $ 4,625 $ 11,794 $ 16,419 Accrued expenses and other liabilities 35,718 10,949 46,667 Redeemable noncontrolling interests 1 50,384 50,385 Total equity 897,435 - 897,435 Total liabilities and equity $ 937,779 $ 73,127 $ 1,010,906 |
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 March 31, 2020 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 3,725 $ 644 $ 4,369 Total expenses 5,493 198 5,464 Operating loss (1,768 ) 446 (1,095 ) Total other income, net (95,438 ) (4,391 ) (100,056 ) Income before income taxes (97,206 ) (3,945 ) (101,151 ) Income tax expense (23,799 ) - (23,799 ) Net income before NCI (73,407 ) (3,945 ) (77,352 ) Net income attributable to noncontrolling interests (52 ) (3,945 ) (3,997 ) Net income $ (73,355 ) $ - $ (73,355 ) Three Months Ended March 31, 2019 Prior to Consolidation Consolidated Entities As Reported Total revenues $ 4,817 $ (165 ) $ 4,652 Total expenses 11,462 1,066 12,528 Operating loss (6,645 ) (1,231 ) (7,876 ) Total other income/(expense), net 35,983 2,738 38,721 Loss before income taxes 29,338 1,507 30,845 Income tax benefit 6,191 - 6,191 Net loss before NCI 23,147 1,507 24,654 Net loss attributable to noncontrolling interests - 1,507 1,507 Net loss $ 23,147 $ - $ 23,147 |
GAMCO's Net Interests in Consolidated VIE's | The following table presents the balances related to VIEs that are consolidated and included on the condensed consolidated statements of financial condition as well as the Company’s net interest in these VIEs (in thousands): March 31, 2020 December 31, 2019 Cash and cash equivalents $ 2,384 $ 2,224 Investments in securities 13,570 18,454 Receivable from brokers 2,097 2,601 Investments in partnerships and affiliates 8,120 8,363 Accrued expenses and other liabilities (198 ) (329 ) Redeemable noncontrolling interests (8,419 ) (9,592 ) AC Group’s net interests in consolidated VIEs $ 17,554 $ 21,721 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 (in thousands): March 31, 2020 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 354,434 $ - $ - $ 354,434 Investments in securities (including GBL stock): Trading - Gov’t obligations - - - - Common stocks 206,694 6,644 36 213,374 Mutual funds 768 - - 768 Other 3,460 1,310 3,895 8,665 Total investments in securities 210,922 7,954 3,931 222,807 Investments in affiliated registered investment companies: Closed-end funds 68,696 - - 68,696 Mutual funds 53,038 - - 53,038 Total investments in affiliated registered investment companies 121,734 - - 121,734 Total investments held at fair value 332,656 7,954 3,931 344,541 Total assets at fair value $ 687,090 $ 7,954 $ 3,931 $ 698,975 Liabilities Common stocks $ 16,656 $ - $ - $ 16,656 Other - 766 - 766 Securities sold, not yet purchased $ 16,656 $ 766 $ - $ 17,422 December 31, 2019 Assets Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Total Cash equivalents $ 343,428 $ - $ - $ 343,428 Investments in securities (including GBL stock): Trading - Gov’t obligations 29,037 - - 29,037 Common stocks 257,520 4,444 89 262,562 Mutual funds 2,196 - - 2,196 Other 2,428 509 4,134 6,562 Total investments in securities 291,181 4,953 4,223 300,357 Investments in affiliated registered investment companies: Closed-end funds 99,834 - - 99,834 Mutual funds 59,477 - - 59,477 Total investments in affiliated registered investment companies 159,311 - - 159,311 Total investments held at fair value 450,492 4,953 4,223 459,668 Total assets at fair value $ 793,920 $ 4,953 $ 4,223 $ 803,096 Liabilities Common stocks $ 16,300 $ - $ - $ 16,300 Other - 119 - 119 Securities sold, not yet purchased $ 16,300 $ 119 $ - $ 16,419 |
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 March 31, 2020 Three months ended March 31, 2019 Common Stocks Other Total Common Stocks Other Total Beginning balance $ 89 $ 4,134 $ 4,223 $ 12 $ 3,458 $ 3,470 Consolidated fund - - - - - - Total gains/(losses) (53 ) (130 ) (183 ) (42 ) (147 ) (189 ) Purchases - - - - - - Sales - - - - - - Transfers - (109 ) (109 ) 63 - 63 Ending balance $ 36 $ 3,895 $ 3,931 $ 33 $ 3,311 $ 3,344 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 $ (53 ) $ (130 ) $ (183 ) $ (42 ) $ (147 ) $ (189 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 (in thousands, except per share data): Three Months Ended March 31, (amounts in thousands, except per share amounts) 2020 2019 Basic: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ (73,355 ) $ 23,147 Weighted average shares outstanding 22,441 22,584 Basic net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ (3.27 ) $ 1.02 Diluted: Net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders $ (73,355 ) $ 23,147 Weighted average share outstanding 22,441 22,584 Diluted net income/(loss) attributable to Associated Capital Group, Inc.’s shareholders per share $ (3.27 ) $ 1.02 |
Basis of Presentation and Sig_3
Basis of Presentation and Significant Accounting Policies (Details) | May 05, 2020$ / shares | Oct. 31, 2019USD ($)shares | Nov. 30, 2015shares | Mar. 31, 2020USD ($)$ / shares | Mar. 16, 2020shares | Dec. 31, 2019$ / shares |
The Spin-off and Related Transactions [Abstract] | ||||||
Number of AC shares issued for each GAMCO shares in connection with spin-off (in shares) | 1 | |||||
Morgan Group Holding, Co. [Member] | ||||||
Acquisition [Abstract] | ||||||
Stock acquired (in shares) | 50,000,000 | |||||
Ownership interest | 83.30% | |||||
Number of shares of acquiree stock to be distributed to shareholders upon spin-off (in share) | 50,000,000 | |||||
Values of stock acquired | $ | $ 5,800,000 | |||||
Share price (in dollars per share) | $ / shares | $ 0.10 | |||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.01 | |||||
Reverse stock split ratio | 0.01 | |||||
Morgan Group Holding, Co. [Member] | Private Placement [Member] | ||||||
Acquisition [Abstract] | ||||||
Number of shares issued (in shares) | 5,150,000 | |||||
Values of shares issued | $ | $ 515,000 | |||||
Class A [Member] | ||||||
Acquisition [Abstract] | ||||||
Common Stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||||
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) | 1 |
Revenue (Details)
Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenues by type [Abstract] | ||
Revenues | $ 4,369 | $ 4,652 |
Investment Advisory and Incentive Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 2,700 | 2,733 |
Asset-Based Advisory Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | $ 1,820 | 1,724 |
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 | $ 0 | 13 |
Sub-Advisory Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 880 | 996 |
Institutional Research Services [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 1,374 | 1,913 |
Hard Dollar Payments [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 102 | 487 |
Commissions [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 937 | 1,426 |
Sales Manager Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 335 | 0 |
Other [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 295 | 6 |
Underwriting Fees [Member] | ||
Revenues by type [Abstract] | ||
Revenues | 30 | 0 |
Miscellaneous [Member] | ||
Revenues by type [Abstract] | ||
Revenues | $ 265 | $ 6 |
Investment in Securities, Inves
Investment in Securities, Investment in Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Investments in securities [Abstract] | |||
Total investment securities, cost | $ 296,839 | $ 309,109 | |
Total investment securities, fair value | [1] | 222,807 | 300,357 |
Government Obligations [Member] | |||
Investments in securities [Abstract] | |||
Debt - trading securities, cost | 0 | 28,428 | |
Debt - trading securities, fair value | 0 | 29,037 | |
Common Stocks [Member] | |||
Investments in securities [Abstract] | |||
Equity securities, cost | 284,446 | 271,627 | |
Equity securities, fair value | 213,374 | 262,562 | |
Mutual Funds [Member] | |||
Investments in securities [Abstract] | |||
Equity securities, cost | 597 | 1,207 | |
Equity securities, fair value | 768 | 2,196 | |
Other Investments [Member] | |||
Investments in securities [Abstract] | |||
Equity securities, cost | 11,796 | 7,847 | |
Equity securities, fair value | $ 8,665 | $ 6,562 | |
[1] | As of March, 31, 2020 and December 31, 2019, cash and cash equivalents, investments in securities, investment in partnerships, receivable from broker, other assets, securities sold, not yet purchased, accrued expenses and other liabilities and redeemable noncontrolling interests include amounts related to consolidated variable interest entities ("VIEs"). |
Investment in Securities, Secur
Investment in Securities, Securities Sold, Not Yet Purchased (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Equity securities [Abstract] | ||
Proceeds | $ 20,367 | $ 13,876 |
Fair value | 17,422 | 16,419 |
Common Stocks [Member] | ||
Equity securities [Abstract] | ||
Proceeds | 20,314 | 13,863 |
Fair value | 16,656 | 16,300 |
Other Investments [Member] | ||
Equity securities [Abstract] | ||
Proceeds | 53 | 13 |
Fair value | $ 766 | $ 119 |
Investment in Securities, Inv_2
Investment in Securities, Investment in Affiliated Registered Investment Companies (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | $ 124,327 | $ 123,994 |
Fair value | 121,734 | 159,311 |
Closed-end Funds [Member] | ||
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | 75,619 | 75,646 |
Fair value | 68,696 | 99,834 |
Mutual Funds [Member] | ||
Total investments in affiliated registered investment companies [Abstract] | ||
Cost | 48,708 | 48,348 |
Fair value | $ 53,038 | $ 59,477 |
Investment in Securities, Fair
Investment in Securities, Fair Values and Gains and Losses of All Derivatives Held (Details) $ in Thousands, shares in Millions | 3 Months Ended | ||
Mar. 31, 2020USD ($)Contractshares | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)Contractshares | |
Investment in Securities [Abstract] | |||
Shares under derivative contract (in shares) | shares | 0.5 | 3.4 | |
Number of foreign exchange contracts | Contract | 1 | 2 | |
Fair Values of All Derivatives Held [Abstract] | |||
Asset derivatives fair values | $ 134 | $ 314 | |
Liability derivatives fair value | 766 | 119 | |
Gains and Losses of All Derivatives Held [Abstract] | |||
Net gain/(loss) from investments | (35) | $ (1,941) | |
Net gain/(loss) from investments [Member] | Equity Contracts [Member] | |||
Gains and Losses of All Derivatives Held [Abstract] | |||
Net gain/(loss) from investments | (86) | (2,022) | |
Net gain/(loss) from investments [Member] | Foreign Exchange Contracts [Member] | |||
Gains and Losses of All Derivatives Held [Abstract] | |||
Net gain/(loss) from investments | 51 | $ 81 | |
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 | 58 | 23 | |
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 | |
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 | 76 | 291 | |
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 | $ 766 | $ 119 |
Investment in Securities, Maste
Investment in Securities, Master Netting Arrangements for Swaps (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Offsetting derivative assets [Abstract] | ||
Gross amounts of recognized assets | $ 134 | $ 314 |
Swaps [Member] | ||
Offsetting derivative assets [Abstract] | ||
Gross amounts of recognized assets | 76 | 291 |
Gross amounts offset in the statements of financial condition | 0 | 0 |
Net amounts of assets presented in the statements of financial condition | 76 | 291 |
Gross amounts not offset in the statements of financial condition [Abstract] | ||
Financial instruments | (76) | (119) |
Cash collateral received | 0 | 0 |
Net amount | 0 | 172 |
Offsetting derivative liabilities [Abstract] | ||
Gross amounts of recognized liabilities | 766 | 119 |
Gross amounts offset in the statements of financial condition | 0 | 0 |
Net amounts of liabilities presented in the statements of financial condition | 766 | 119 |
Gross amounts not offset in the statements of financial condition [Abstract] | ||
Financial instruments | (76) | (119) |
Cash collateral pledged | 0 | 0 |
Net amount | $ 690 | $ 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) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Investments In Affiliated and Unaffiliated Entities [Abstract] | ||
Investments in affiliated entities | $ 117.9 | $ 124.8 |
Investments in unaffiliated entities | $ 19.1 | $ 20.5 |
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 | ||||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | ||||
Assets [Abstract] | |||||||
Cash and cash equivalents | $ 358,594 | [1] | $ 396,020 | $ 348,588 | [1] | ||
Investments in securities (including GBL stock) | 222,807 | 300,357 | |||||
Investments in affiliated registered investment companies | 121,734 | 159,311 | |||||
Investments in partnerships | [1] | 136,937 | 145,372 | ||||
Receivable from brokers | [1] | 17,403 | 24,150 | ||||
Investment advisory fees receivable | 1,311 | 9,582 | |||||
Other assets | 45,304 | 23,546 | |||||
Total assets | 904,090 | 1,010,906 | |||||
Liabilities and equity [Abstract] | |||||||
Securities sold, not yet purchased | [1] | 17,422 | 16,419 | ||||
Accrued expenses and other liabilities | 19,956 | 46,667 | |||||
Redeemable noncontrolling interests | 45,909 | 50,385 | |||||
Total equity | 820,803 | 889,004 | 897,435 | $ 866,248 | |||
Total liabilities and equity | 904,090 | 1,010,906 | |||||
Consolidated Statements of Income [Abstract] | |||||||
Total revenues | 4,369 | 4,652 | |||||
Total expenses | 5,464 | 12,528 | |||||
Operating loss | (1,095) | (7,876) | |||||
Total other income/(expense), net | (100,056) | 38,721 | |||||
Income/(loss) before income taxes | (101,151) | 30,845 | |||||
Income tax expense/(benefit) | (23,799) | 6,191 | |||||
Net income/(loss) | (77,352) | 24,654 | |||||
Net income/(loss) attributable to noncontrolling interests | (3,997) | 1,507 | |||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | (73,355) | 23,147 | |||||
Consolidated Entities [Member] | |||||||
Assets [Abstract] | |||||||
Cash and cash equivalents | 16,467 | 13,167 | |||||
Investments in securities (including GBL stock) | 95,447 | 117,684 | |||||
Investments in affiliated registered investment companies | (47,399) | (51,713) | |||||
Investments in partnerships | (17,732) | (22,409) | |||||
Receivable from brokers | 12,615 | 16,391 | |||||
Investment advisory fees receivable | (23) | (22) | |||||
Other assets | 132 | 29 | |||||
Total assets | 59,507 | 73,127 | |||||
Liabilities and equity [Abstract] | |||||||
Securities sold, not yet purchased | 10,458 | 11,794 | |||||
Accrued expenses and other liabilities | 3,140 | 10,949 | |||||
Redeemable noncontrolling interests | 45,909 | 50,384 | |||||
Total equity | 0 | 0 | |||||
Total liabilities and equity | 59,507 | 73,127 | |||||
Consolidated Statements of Income [Abstract] | |||||||
Total revenues | 644 | (165) | |||||
Total expenses | 198 | 1,066 | |||||
Operating loss | 446 | (1,231) | |||||
Total other income/(expense), net | (4,391) | 2,738 | |||||
Income/(loss) before income taxes | (3,945) | 1,507 | |||||
Income tax expense/(benefit) | 0 | 0 | |||||
Net income/(loss) | (3,945) | 1,507 | |||||
Net income/(loss) attributable to noncontrolling interests | (3,945) | 1,507 | |||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | 0 | 0 | |||||
Prior to Consolidation [Member] | |||||||
Assets [Abstract] | |||||||
Cash and cash equivalents | 342,127 | 335,421 | |||||
Investments in securities (including GBL stock) | 127,360 | 182,673 | |||||
Investments in affiliated registered investment companies | 169,133 | 211,024 | |||||
Investments in partnerships | 154,669 | 167,781 | |||||
Receivable from brokers | 4,788 | 7,759 | |||||
Investment advisory fees receivable | 1,334 | 9,604 | |||||
Other assets | 45,172 | 23,517 | |||||
Total assets | 844,583 | 937,779 | |||||
Liabilities and equity [Abstract] | |||||||
Securities sold, not yet purchased | 6,964 | 4,625 | |||||
Accrued expenses and other liabilities | 16,816 | 35,718 | |||||
Redeemable noncontrolling interests | 0 | 1 | |||||
Total equity | 820,803 | 897,435 | |||||
Total liabilities and equity | 844,583 | $ 937,779 | |||||
Consolidated Statements of Income [Abstract] | |||||||
Total revenues | 3,725 | 4,817 | |||||
Total expenses | 5,493 | 11,462 | |||||
Operating loss | (1,768) | (6,645) | |||||
Total other income/(expense), net | (95,438) | 35,983 | |||||
Income/(loss) before income taxes | (97,206) | 29,338 | |||||
Income tax expense/(benefit) | (23,799) | 6,191 | |||||
Net income/(loss) | (73,407) | 23,147 | |||||
Net income/(loss) attributable to noncontrolling interests | (52) | 0 | |||||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ (73,355) | $ 23,147 | |||||
[1] | As of March, 31, 2020 and December 31, 2019, cash and cash equivalents, investments in securities, investment in partnerships, receivable from broker, other assets, securities sold, not yet purchased, accrued expenses and other liabilities and redeemable noncontrolling interests include amounts related to consolidated variable interest entities ("VIEs"). |
Investment Partnerships and V_5
Investment Partnerships and Variable Interest Entities, Variable Interest Entities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |||
Balances related to VIEs [Abstract] | ||||||
Cash and cash equivalents | $ 358,594 | [1] | $ 348,588 | [1] | $ 396,020 | |
Receivable from brokers | [1] | 17,403 | 24,150 | |||
Accrued expenses and other liabilities | (19,956) | (46,667) | ||||
Redeemable noncontrolling interests | (45,909) | (50,385) | ||||
VIEs [Member] | ||||||
Balances related to VIEs [Abstract] | ||||||
Cash and cash equivalents | 2,384 | 2,224 | ||||
Investments in securities | 13,570 | 18,454 | ||||
Receivable from brokers | 2,097 | 2,601 | ||||
Investments in partnerships and affiliates | 8,120 | 8,363 | ||||
Accrued expenses and other liabilities | (198) | (329) | ||||
Redeemable noncontrolling interests | (8,419) | (9,592) | ||||
AC Group's net interests in consolidated VIEs | $ 17,554 | $ 21,721 | ||||
[1] | As of March, 31, 2020 and December 31, 2019, cash and cash equivalents, investments in securities, investment in partnerships, receivable from broker, other assets, securities sold, not yet purchased, accrued expenses and other liabilities and redeemable noncontrolling interests include amounts related to consolidated variable interest entities ("VIEs"). |
Fair Value, Assets and Liabilit
Fair Value, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Assets [Abstract] | |||
Total investments in securities | [1] | $ 222,807 | $ 300,357 |
Investments in affiliated registered investment companies | 121,734 | 159,311 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | [1] | 17,422 | 16,419 |
Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 29,037 | |
Common Stocks [Member] | |||
Assets [Abstract] | |||
Equity securities | 213,374 | 262,562 | |
Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Investments in affiliated registered investment companies | 68,696 | 99,834 | |
Mutual Funds [Member] | |||
Assets [Abstract] | |||
Equity securities | 768 | 2,196 | |
Investments in affiliated registered investment companies | 53,038 | 59,477 | |
Other [Member] | |||
Assets [Abstract] | |||
Equity securities | 8,665 | 6,562 | |
Recurring Basis [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 354,434 | 343,428 | |
Total investments in securities | 222,807 | 300,357 | |
Investments in affiliated registered investment companies | 121,734 | 159,311 | |
Total investments held at fair value | 344,541 | 459,668 | |
Total assets at fair value | 698,975 | 803,096 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 17,422 | 16,419 | |
Recurring Basis [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 29,037 | |
Recurring Basis [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Equity securities | 213,374 | 262,562 | |
Liabilities [Abstract] | |||
Trading | 16,656 | 16,300 | |
Recurring Basis [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Investments in affiliated registered investment companies | 68,696 | 99,834 | |
Recurring Basis [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Equity securities | 768 | 2,196 | |
Investments in affiliated registered investment companies | 53,038 | 59,477 | |
Recurring Basis [Member] | Other [Member] | |||
Assets [Abstract] | |||
Equity securities | 8,665 | 6,562 | |
Liabilities [Abstract] | |||
Trading | 766 | 119 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 354,434 | 343,428 | |
Total investments in securities | 210,922 | 291,181 | |
Investments in affiliated registered investment companies | 121,734 | 159,311 | |
Total investments held at fair value | 332,656 | 450,492 | |
Total assets at fair value | 687,090 | 793,920 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 16,656 | 16,300 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 29,037 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Equity securities | 206,694 | 257,520 | |
Liabilities [Abstract] | |||
Trading | 16,656 | 16,300 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Investments in affiliated registered investment companies | 68,696 | 99,834 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Equity securities | 768 | 2,196 | |
Investments in affiliated registered investment companies | 53,038 | 59,477 | |
Recurring Basis [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Equity securities | 3,460 | 2,428 | |
Liabilities [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 0 | 0 | |
Total investments in securities | 7,954 | 4,953 | |
Investments in affiliated registered investment companies | 0 | 0 | |
Total investments held at fair value | 7,954 | 4,953 | |
Total assets at fair value | 7,954 | 4,953 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 766 | 119 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Equity securities | 6,644 | 4,444 | |
Liabilities [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Investments in affiliated registered investment companies | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Equity securities | 0 | 0 | |
Investments in affiliated registered investment companies | 0 | 0 | |
Recurring Basis [Member] | Significant Other Observable Inputs (Level 2) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Equity securities | 1,310 | 509 | |
Liabilities [Abstract] | |||
Trading | 766 | 119 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets [Abstract] | |||
Cash equivalents | 0 | 0 | |
Total investments in securities | 3,931 | 4,223 | |
Investments in affiliated registered investment companies | 0 | 0 | |
Total investments held at fair value | 3,931 | 4,223 | |
Total assets at fair value | 3,931 | 4,223 | |
Liabilities [Abstract] | |||
Securities sold, not yet purchased | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Government Obligations [Member] | |||
Assets [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Common Stocks [Member] | |||
Assets [Abstract] | |||
Equity securities | 36 | 89 | |
Liabilities [Abstract] | |||
Trading | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Closed-end Funds [Member] | |||
Assets [Abstract] | |||
Investments in affiliated registered investment companies | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Mutual Funds [Member] | |||
Assets [Abstract] | |||
Equity securities | 0 | 0 | |
Investments in affiliated registered investment companies | 0 | 0 | |
Recurring Basis [Member] | Significant Unobservable Inputs (Level 3) [Member] | Other [Member] | |||
Assets [Abstract] | |||
Equity securities | 3,895 | 4,134 | |
Liabilities [Abstract] | |||
Trading | $ 0 | $ 0 | |
[1] | As of March, 31, 2020 and December 31, 2019, cash and cash equivalents, investments in securities, investment in partnerships, receivable from broker, other assets, securities sold, not yet purchased, accrued expenses and other liabilities and redeemable noncontrolling interests include amounts related to consolidated variable interest entities ("VIEs"). |
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 | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||
Beginning balance | $ 4,223 | $ 3,470 |
Consolidated fund | 0 | |
Total gains/(losses) | (183) | (189) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers | (109) | 63 |
Ending balance | 3,931 | 3,344 |
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 | (183) | (189) |
Unobservable Inputs Reconciliation, Transfers [Abstract] | ||
Transfers into level 3 | 63 | |
Transfers into level 1 | 109 | |
Common Stocks [Member] | ||
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||
Beginning balance | 89 | 12 |
Consolidated fund | 0 | |
Total gains/(losses) | (53) | (42) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers | 0 | 63 |
Ending balance | 36 | 33 |
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 | (53) | (42) |
Other [Member] | ||
Changes in Level 3 Assets Measured at Fair Value on a Recurring Basis [Roll Forward] | ||
Beginning balance | 4,134 | 3,458 |
Consolidated fund | 0 | |
Total gains/(losses) | (130) | (147) |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Transfers | (109) | 0 |
Ending balance | 3,895 | 3,311 |
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 | $ (130) | $ (147) |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Taxes [Abstract] | ||
Effective income tax rate | 23.50% | 20.10% |
Standard corporate tax rate | 21.00% | 21.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Basic [Abstract] | ||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ (73,355) | $ 23,147 |
Weighted average shares outstanding (in shares) | 22,441 | 22,584 |
Basic net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share (in dollars per share) | $ (3.27) | $ 1.02 |
Diluted [Abstract] | ||
Net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders | $ (73,355) | $ 23,147 |
Weighted average shares outstanding (in shares) | 22,441 | 22,584 |
Diluted net income/(loss) attributable to Associated Capital Group, Inc.'s shareholders per share (in dollars per share) | $ (3.27) | $ 1.02 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) $ / shares in Units, $ in Thousands | Feb. 04, 2020shares | Dec. 31, 2018shares | Aug. 31, 2018shares | Mar. 31, 2020USD ($)VotePlan$ / sharesshares | Mar. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2019USD ($)shares |
Stockholders' Equity [Abstract] | ||||||
Shares outstanding (in shares) | 22,400,000 | 22,500,000 | ||||
Dividends [Abstract] | ||||||
Dividends declared (in dollars per share) | $ / shares | $ 0 | $ 0 | ||||
Stock Repurchase Program [Abstract] | ||||||
Shares repurchased during the period (in shares) | 82,000 | 10,000 | ||||
Average price per share of repurchased shares (in dollars per share) | $ / shares | $ 39.43 | $ 40.03 | ||||
Total investment amount | $ | $ 3,200 | $ 400 | ||||
Stock Award and Incentive Plan [Abstract] | ||||||
Number of stock award and incentive plans | Plan | 1 | |||||
Number of shares awarded (in shares) | 700,000 | |||||
Shares available for future issuance (in shares) | 1,300,000 | |||||
Compensation payable | $ | $ 5,665 | $ 20,246 | ||||
Stock-based compensation expense | $ | $ (800) | $ 400 | ||||
Maximum [Member] | ||||||
Stock Award and Incentive Plan [Abstract] | ||||||
Term of RSAs and stock options | 10 years | |||||
Class A [Member] | ||||||
Stockholders' Equity [Abstract] | ||||||
Shares outstanding (in shares) | 3,390,590 | 3,452,381 | ||||
Voting Rights [Abstract] | ||||||
Number of votes per share | Vote | 1 | |||||
Class A [Member] | Maximum [Member] | ||||||
Stock Award and Incentive Plan [Abstract] | ||||||
Shares reserved for future issuance (in shares) | 2,000,000 | |||||
Class B [Member] | ||||||
Stockholders' Equity [Abstract] | ||||||
Shares outstanding (in shares) | 19,002,918 | 19,022,918 | ||||
Voting Rights [Abstract] | ||||||
Number of votes per share | Vote | 10 | |||||
Phantom RSAs [Member] | ||||||
Stock Award and Incentive Plan [Abstract] | ||||||
Granted (in shares) | 172,800 | 172,800 | ||||
Compensation payable | $ | $ 1,200 | $ 2,000 | ||||
Shares outstanding (in shares) | 96,650 | 119,650 | ||||
Unrecognized compensation cost | $ | $ 1,200 | |||||
Weighted-average period for recognizing unrecognized compensation cost | 2 years 1 month 6 days | |||||
Shares forfeited (in shares) | 23,000 | |||||
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 | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Goodwill [Abstract] | |||
Goodwill | $ 3,519 | $ 3,519 | |
Impairment charges on goodwill | 0 | $ 0 | |
GCIA [Member] | |||
Goodwill [Abstract] | |||
Goodwill | $ 3,400 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | May 05, 2020 | May 11, 2020 | Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Financing Activities [Abstract] | |||||
Shares repurchased during the period (in shares) | 82,000 | 10,000 | |||
Average price per share of repurchased shares (in dollars per share) | $ 39.43 | $ 40.03 | |||
Dividends declared (in dollars per share) | $ 0 | $ 0 | |||
Subsequent Event [Member] | |||||
Financing Activities [Abstract] | |||||
Shares repurchased during the period (in shares) | 16,749 | ||||
Average price per share of repurchased shares (in dollars per share) | $ 35.08 | ||||
Dividend declared date | May 5, 2020 | ||||
Dividends declared (in dollars per share) | $ 0.10 | ||||
Dividend payable date | Jun. 30, 2020 | ||||
Dividend record date | Jun. 16, 2020 | ||||
Redemption of separately managed account by institutional investor | $ 115 | ||||
Separately managed account by institutional investor | $ 53.6 |