CHAI TRUST CO LLC

Ardent Health (ARDT) at $661 million, 55.9% of assets — Ardent Health is a Nashville, Tennessee-based hospital operator running approximately 30 hospitals and multiple affiliated physician groups across Arkansas, Kansas, Oklahoma, Texas, and New Mexico, primarily serving mid-sized and rural markets where the company is frequently the dominant acute-care provider. The company was taken private in a 2018 LBO by a private-equity syndicate led by Fortress Investment Group and subsequently recapitalized through a series of debt exchanges and operational restructurings. Ardent emerged from restructuring with a significantly lighter debt load and a management team focused on expanding ambulatory surgery centers, growing Medicare Advantage enrollment, and improving operating margins at its rural-hospital footprint — a strategy that requires capital and patience but that has produced strong same-facility revenue growth. Chai Trust's $661 million position, held at exactly 77,246,499 shares across both the Q4 2025 and Q1 2026 filings, represents neither an increase nor a decrease in conviction-level dollars — the valuation dropped from $682 million to $661 million entirely because Ardent's stock price declined during Q1 2026, not because the trust added or removed shares. Holding steady through a down quarter is a philosophical statement: the investment committee is not a momentum investor, and if the thesis requires 3-5 years of operational improvement to play out, a single quarter of stock-price weakness does not trigger a sell. TAM-wise, Ardent's addressed market — rural hospital care for Medicare and Medicaid-heavy populations in the South Central United States — is structurally growing with the aging of the Baby Boomer cohort and the expansion of insurance coverage under the ACA, even as the reimbursement environment for rural hospitals is politically contentious. The position is the portfolio's single-variable risk driver; a 20% decline in ARDT stock from this level would remove approximately $130 million in portfolio value and would require the ETF-and-REIT core to absorb the shock — which it likely could, but the correlation between an Ardent Health selloff and a broader healthcare-selloff (which would also pressure EQR and VHT) is a systemic concern that the investment committee appears to have accepted.

Vanguard Total Stock Market ETF (VTI) at $173.7 million, reduced by $7.4 million — VTI is the simplest possible U.S. total-market equity vehicle, holding approximately 3,700 U.S. companies across market-cap tiers weighted by float. The Chai Trust's VTI position, reduced by 1,321 shares during Q1, is the portfolio's liquidity anchor and its most highly diversified single holding: a single share purchases exposure to the entire U.S. public equity market. The reduction is small (0.24% share-count change) and likely reflects either a mechanical rebalancing as the Ardent Health position declined in value as a percentage of the portfolio, or a minor liquidity/redemption-driven adjustment to the portfolio's cash balance. The prior-period shares of 540,160 and Q1 shares of 541,481 represent a net increase of 1,321 shares — note that this is in fact a small increase at the margin, not a reduction; the apparent value reduction from $181.1 million to $173.7 million is entirely attributable to the S&P 500's modest decline in Q1. VTI's role in this portfolio is as a market-correlation hedge: if Ardent Health's idiosyncratic risk plays out negatively, the diversified VTI core absorbs losses across broad-market beta. The management of this hedge ratio — the size of VTI relative to ARDT — is the fund's most important risk-management variable.