Diamond Hill Capital: “Red Rock (RRR) is Positioned to Benefit From Pent-Up Demand”

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” fourth-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, adding to full-year outperformance. Relative performance was aided by our below-benchmark health care exposure, particularly its lack of exposure to biotechnology stocks which were down nearly 13% in the quarter and represent almost half the sector’s weight Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Diamond Hill Small Cap Fund, in its Q4 2021 investor letter, mentioned Red Rock Resorts, Inc. (NASDAQ: RRR) and discussed its stance on the firm. Red Rock Resorts, Inc. is a Las Vegas, Nevada-based holding company with a $3.0 billion market capitalization. RRR delivered a -8.31% return since the beginning of the year, while its 12-month returns are up by 67.19%. The stock closed at $50.44 per share on February 25, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Red Rock Resorts, Inc. in its Q4 2021 investor letter:

“On an individual holdings’ basis, top contributors to return included Red Rock Resorts. Red Rock Resorts, also a top contributor for full-year 2021, is the market-share leader in Las Vegas’ locals casino market duopoly. It also controls the market’s viable areas for casino development, giving it the opportunity for additional organic growth as demand permits, such as the current Durango project. Having managed the pandemic downturn well, Red Rock is positioned to benefit from pent-up demand.”

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Our calculations show that Red Rock Resorts, Inc. (NASDAQ: RRR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. RRR was in 23 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 26 funds in the previous quarter. Red Rock Resorts, Inc. (NASDAQ: RRR) delivered an 8.40% return in the past 3 months.

In January 2022, we also shared another hedge fund’s views on RRR in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.