Here’s Why Baron Funds Remains Bullish in Red Rock Resorts (RRR)

Baron Funds, an asset management firm, published its “Baron Discovery Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. A quarterly return of 3.13% was delivered by the fund’s institutional shares for the fourth quarter of 2021, which was better than the Russell 2000 Growth Index’s 0.01% return, but below the S&P 500 Index’s gain of 11.03% for the same period. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Baron Discovery 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 $2.7 billion market capitalization. RRR delivered a -18.27% return since the beginning of the year, while its 12-month returns are up by 73.72%. The stock closed at $44.96 per share on January 20, 2022.

Here is what Baron Discovery Fund has to say about Red Rock Resorts, Inc. in its Q4 2021 investor letter:

“We opportunistically added to our position in Rexford Industrial Realty, Inc. as we viewed the stock pullback early in the quarter as unjustified given what we viewed as the company’s opportunity to outperform earnings expectations in subsequent periods. We are also bullish on the company’s ability to continue to execute accretive acquisitions.”

Dean Drobot/Shutterstock.com

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 26 hedge fund portfolios at the end of the third quarter of 2021, compared to 26 funds in the previous quarter. Red Rock Resorts, Inc. (NASDAQ: RRR) delivered a -21.32% return in the past 3 months.

In November 2021, 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.