Good morning, and welcome to the Icahn Enterprises L.P. Q3 2018 Earnings Call with Jesse Lynn, General Counsel; Keith Cozza, President and CEO; SungHwan Cho, Chief Financial Officer. I would now like to hand over the call to Jesse Lynn, who'll read the opening statement.

Thank you, Operator. The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements we make in this presentation, including statements regarding our future performance and plans for our businesses and potential acquisitions. These forward-looking statements involve risks and uncertainties that are discussed in our filings with the Securities and Exchange Commission, including economic, competitive, legal and other factors. Accordingly, there is no assurance that our expectations will be realized. We assume no obligation to update or revise any forward-looking statements should circumstances change, except as otherwise required by law. This presentation also includes certain non-GAAP financial measures. A reconciliation of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the back of this presentation. I'll now turn it over to Keith Cozza, our Chief Executive Officer.

Thanks, Jesse. Good morning, and welcome to the Third Quarter 2018 Icahn Enterprises Earnings Conference Call. Joining me on today's call is SungHwan Cho, our Chief Financial Officer. I will begin by providing some brief highlights. Sung will then provide an in-depth review of our financial results and the performance of our business segments. We will then be available to address your questions. For Q3 2018, we had net income attributable to Icahn Enterprises of $126 million or $0.68 per LP unit compared to net income of $597 million or $3.53 per LP unit in the prior year period. Net loss attributable to Icahn Enterprises from continuing operations for Q3 2018 was $29 million or $0.16 per LP unit compared to net income of $577 million or $3.41 per LP unit in the prior year period. Adjusted EBITDA attributable to Icahn Enterprises for Q3 2018 was $26 million compared to $345 million for Q3 of 2017. Subsequent to quarter-end, we closed on our previously announced sales of both Federal-Mogul and Tropicana Entertainment. We sold Federal-Mogul to Tenneco for $800 million in cash and 29.5 million shares of Tenneco common stock. All of Federal-Mogul's outstanding debt at the time of closing was assumed by Tenneco. We sold Tropicana's real estate to Gaming and Leisure Properties, Inc. and merged Tropicana's gaming and hotel operations into Eldorado Resorts, Inc. for an aggregate consideration of approximately $1.85 billion. The transaction did not include Tropicana's Aruba assets, which were acquired by a subsidiary of IEP prior to closing. Subsequent to quarter-end, we also entered into a definitive agreement to emerge our majority-owned subsidiary, American Railcar Industries, with a wholly-owned subsidiary of ITE Rail Fund L.P. at a price of $70 per share in cash. IEP's investment in ARI has generated a total return of 423%…

Thanks, Keith. I'll begin by briefly reviewing our consolidated results and then highlight the performance of our operating segments and comment on the strength of our balance sheet. In Q3 2018, net income attributable to Icahn Enterprises was $126 million compared to net income of $597 million in the prior year period. Net loss attributable to Icahn Enterprises from continuing operations for Q3 2018 was $29 million compared to net income of $577 million in the prior year period. As you can see on Slide 5. In Q3 2018, the performance of the investment funds was the primary driver of our net loss from continuing operations for the quarter. Q3 2017 income benefited from the sale of the Fontainebleau property in Las Vegas. Adjusted EBITDA attributable to Icahn Enterprises for Q3 2018 was $26 million compared to $345 million in Q3 2017. I will now provide more detail regarding the performance of the individual segments. Our Investment segment had a loss attributable to Icahn Enterprises of $206 million for Q3 2018. The investment funds had a negative return of 6.3% in Q3 2018 compared to a positive return of 5.1% for Q3 2017. Long positions had a positive performance attribution of 1.1% for the current quarter, while short positions and other expenses had a negative performance attribution of 7.4%. Since inception in November 2004 through the end of Q3 2018, the investment funds growth return is 128% or approximately 6.1% annualized. The investment funds continue to be significantly hedged. At the end of Q3 2018, net short exposure was 26% compared to a net long exposure of 14% at the end of 2017 and a net long exposure of 11% at the end of Q2 2018. IEP's investment in the funds was $3 billion as of September 30, 2018. In…

[Operator Instructions]. Our first question comes from James Steele from Jefferies.

I guess, just sort of generally on the capital position and how we should be thinking about modeling going into 2019. Just curious if maybe we should be -- if most of that's probably earmarked for the hedge fund or if there might be some other uses such as debt pay down or capital return?

Yes, sure. Hi, James, it's Keith. No, I think if you -- and there is a slide in the webcast that shows the pro forma because the Tropicana and Federal-Mogul deals literally closed on October 1 and so that provided an inflow of $2.2 billion to $2.3 billion. If you look at, that's why the pro forma, a significant portion of those funds about, I'd say, $1.8 billion went into the Investment segment and the rest is cash being held at holdco, but there are no current plans to retire any debt. But we're on the lookout for additional operating companies, and we continue to do what we've historically done in our Investment segment.

Okay. And then just sort of on that note, I know that you don't usually give intra-quarter commentary, but just curious if the volatile environment in October and then maybe even more recently in mid-terms resulted in changes to the positioning of the hedge fund?

I don't think the market volatility impacted our investment strategy, but as you can see from the change in exposures at the end of Q2, we were net long a little bit, and if you look at the end of Q3, we kind of went the other way and were a bit net short. That reflected our view of increased risks in the marketplace and wanting to protect the Investment segment from macro risk. So I would just point out that we ended the quarter net short, which is obviously helpful in a month like October.

Okay. And then maybe just one more, just kind of generally on the railcar transaction, still expected to close in 4Q, I take it. Has there been any update on the -- from the regulators? Or just kind of any color on how that transaction is closing?

Well, what I'm comfortable sharing is, it's public that the buyer already received antitrust clearance that's been made public on the FTC's website as well as on the information statement. So antitrust was obviously a significant hurdle, and we expect it to close in Q4.

[Operator Instructions]. I currently have no more questions in queue.

Okay. Thanks, operator. All right, thank you, everybody. We'll look forward to talking to you in February with the year-end results. Have a good day.