v3.26.1
DERIVATIVES AND HEDGING
 6 Months Ended
Jun. 30, 2026
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING DERIVATIVES AND HEDGING
Derivatives Held By Consolidated Funds
Certain consolidated funds utilize derivatives in their ongoing investment operations. These derivatives primarily consist of foreign-currency forward contracts and options utilized to manage currency risk, interest-rate swaps to hedge interest-rate risk, options and futures used to hedge certain exposures for specific securities, and total-return swaps utilized mainly to obtain exposure to leveraged loans or to participate in foreign markets not readily accessible. The primary risk exposure for options and futures is price, while the primary risk exposure for total-return swaps is credit. None of the derivative instruments are accounted for as a hedging instrument utilizing hedge accounting.
The fair value of derivatives held by the consolidated funds consisted of the following:
AssetsLiabilities
NotionalFair ValueNotionalFair Value
As of June 30, 2026
Foreign-currency forward contracts$920,064 $19,190 $(115,544)$(39,176)
Total-return and interest-rate and credit default swaps184,975 1,988 (74,819)(1,548)
Options and futures139,816 24 (10,146)(306)
Total
$1,244,855 $21,202 $(200,509)$(41,030)
As of December 31, 2025
Foreign-currency forward contracts$1,066,772 $7,800 $(216,189)$(47,032)
Total-return and interest-rate and credit default swaps219,693 1,270 (5,584)— 
Options and futures62,266 — (16,587)(1,861)
Total
$1,348,731 $9,070 $(238,360)$(48,893)
The impact of derivatives held by the consolidated funds in the condensed consolidated statements of operations was as follows:
Three months ended June 30,
20262025
Net Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on InvestmentsNet Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on Investments
Foreign-currency forward contracts
$(1,185)$(1,471)$(1,103)$(39,021)
Total-return and interest-rate and credit default swaps(88)(60)— (69)
Options and futures402 2,282 (1,141)3,349 
Commodity swaps(103)(506)— — 
Total$(974)$245 $(2,244)$(35,741)
Six months ended June 30,
20262025
Net Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on InvestmentsNet Realized Gain (Loss) on InvestmentsNet Change in Unrealized Appreciation (Depreciation) on Investments
Foreign-currency forward contracts
$(514)$19,246 $4,352 $(64,492)
Total-return and interest-rate and credit default swaps365 (1,353)(627)647 
Options and futures1,189 2,451 98 1,469 
Commodity swaps(103)(506)— — 
Total$937 $19,838 $3,823 $(62,376)
Balance Sheet Offsetting
The Company recognizes all derivatives as assets or liabilities at fair value in its condensed consolidated statements of financial condition. In connection with its derivative activities, the Company generally enters into agreements subject to enforceable master netting arrangements that allow the Company to offset derivative assets and liabilities in the same currency by specific derivative type or, in the event of default by the counterparty, to offset derivative assets and liabilities with the same counterparty. While these derivatives are eligible to be offset in accordance with applicable accounting guidance, the Company has elected to present derivative assets and liabilities based on gross fair value in its condensed consolidated statements of financial condition. The table below sets forth the setoff rights and related arrangements associated with derivatives held by the Company. The “gross amounts not offset in statements of financial condition” columns represent derivatives that management has elected not to offset in the condensed consolidated statements of financial condition even though they are eligible to be offset in accordance with applicable accounting guidance.
Gross Amounts of Assets (Liabilities) PresentedGross Amounts Not Offset in Statements of Financial ConditionNet Amount
As of June 30, 2026Derivative Assets (Liabilities)Cash Collateral Received (Pledged)
Derivative Assets:
Derivative assets of consolidated funds:
Foreign-currency forward contracts
$19,190 $— $— $19,190 
Total-return and interest-rate and credit default swaps1,988 — — 1,988 
Options and futures24 — — 24 
Total$21,202 $— $— $21,202 
Derivative Liabilities:
Derivative liabilities of consolidated funds:
Foreign-currency forward contracts
$(39,176)$— $— $(39,176)
Total-return and interest-rate and credit default swaps(1,548)— — (1,548)
Options and futures(306)— — (306)
Total$(41,030)$— $— $(41,030)
Gross Amounts of Assets (Liabilities) PresentedGross Amounts Not Offset in Statements of Financial ConditionNet Amount
As of December 31, 2025Derivative Assets (Liabilities)Cash Collateral Received (Pledged)
Derivative Assets:
Derivative assets of consolidated funds:
Foreign-currency forward contracts
$7,800 $— $— $7,800 
Total-return and interest-rate and credit default swaps1,270 — — 1,270 
Total$9,070 $— $— $9,070 
Derivative Liabilities:
Derivative liabilities of consolidated funds:
Foreign-currency forward contracts$(47,032)$— $— $(47,032)
Options and futures
(1,861)— (1,861)
Total$(48,893)$— $— $(48,893)