Investments and Related Matters.

Investment

Investments, and securities sold, not yet purchased consist of equities, bonds, bank debt and other corporate obligations, all of which are reported at fair value in our condensed consolidated balance sheets. These investments are considered trading securities. In addition, our Investment segment has certain derivative transactions which are discussed in Note 6, "Financial Instruments - Investment Segment and Holding Company." The carrying value and detail of security type and business sector with respect to investments and securities sold, not yet purchased held by our Investment segment consist of the following:



	September 30, 2016		December 31, 2015
Assets	(in millions)
Investments:
Equity securities:
Basic materials	$	904	$	563
Communications	176		407
Consumer, non-cyclical	2,729		3,684
Consumer, cyclical	298		115
Diversified	19		17
Energy	1,464		1,461
Financial	2,167		2,094
Industrial	240		188
Technology	1,031		5,795
	9,028		14,324
Corporate debt:
Consumer, non-cyclical	103		—
Consumer, cyclical	170		55
Financial	4		4
Sovereign debt	—		13
Utilities	12		—
	289		72
Mortgage-backed securities:
Financial	—		157
	$	9,317	$	14,553
Liabilities
Securities sold, not yet purchased, at fair value:
Equity securities:
Consumer, non-cyclical	$	4	$	794
Consumer, cyclical	891		—
Energy	14		—
Financial	129		—
Industrial	116		—
	1,154		794
Debt securities:
Consumer, cyclical	56		—
	$	1,210	$	794

The portion of trading gains (losses) that relates to trading securities still held by our Investment segment was $754 million and approximately $(2.2) billion for the three months ended September 30, 2016 and 2015, respectively, and $626 million and approximately $(1.9) billion for the nine months ended September 30, 2016 and 2015, respectively.

Our Investment segment assesses the applicability of equity method accounting with respect to their investments based on a combination of qualitative and quantitative factors, including overall stock ownership of the Investment Funds combined with those of our affiliates along with board of directors representation.

As of September 30, 2016, the Investment Funds and their affiliates collectively owned approximately 21.1% of Herbalife Ltd. ("Herbalife"). Our Investment segment applied the fair value option to Herbalife because this investment would have otherwise been subject to the equity method of accounting during the third quarter of 2016. Our Investment segment recorded net gains of $52 million and $119 million for the three and nine months ended September 30, 2016, respectively, with respect to its investment in Herbalife. As of September 30, 2016, the fair value of the Investment Funds' investment in Herbalife was $973 million and was included in investments in our condensed consolidated balance sheets. We believe that the Investment Funds' investment in Herbalife is not material to our condensed consolidated financial statements.

Other Segments

The carrying value of investments held by our other segments and our Holding Company consist of the following:



	September 30, 2016		December 31, 2015
	(in millions)
Equity method investments	$	302	$	323
Other investments	368		475
	$	670	$	798