Should You Consider Adding RCI Hospitality Holdings (RICK) to Your Portfolio?

Ace River Capital, an investment management company, released its first quarter 2023 investor letter. A copy of the same can be downloaded here. In the first quarter, the fund delivered -14.63% compared to 7.45% for the S&P 500 Index and 2.34% for the Russel 2000 Index.  In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Ace River Capital highlighted stocks like RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in the first quarter 2023 investor letter. Headquartered in Houston, Texas, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) owns and operates nightclubs and resorts. On April 6, 2023, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) stock closed at $74.94 per share. One-month return of RCI Hospitality Holdings, Inc. (NASDAQ:RICK) was -9.99%, and its shares gained 24.73% of their value over the last 52 weeks. RCI Hospitality Holdings, Inc. (NASDAQ:RICK) has a market capitalization of $691.713 million.

Ace River Capital made the following comment about RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in its Q1 2023 investor letter:

“The fund’s top position is RCI Hospitality Holdings, Inc. (NASDAQ:RICK). RICK is the only publicly traded owner of adult nightclubs in the US. Currently they own 54 clubs across 13 states and an additional 13 sports-bar restaurants with the “Bombshells” concept that has recently began franchising. With few municipalities issuing new adult entertainment licenses these businesses function as local monopolies with excellent unit economics.

RICK has become the acquirer of choice for owners of these clubs across the country. As many current owners approach retirement, RICK has been producing cash at record levels and is in the unique position of being experienced in managing these assets efficiently, while having the cash or access to capital to roll up the top performing clubs with little to no competition. The US market has roughly 2200 of these clubs and 500 of those meet RICK’s acquisition criteria…” (Click here to read the full text)

Pola Damonte/Shutterstock.com

RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held RCI Hospitality Holdings, Inc. (NASDAQ:RICK) at the end of the fourth quarter which was 13 in the previous quarter.

We discussed RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in another article and shared Bireme Capital’s views on the company. In addition, please check out our hedge fund investor letters Q1 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 25 Gayest Cities in the World
• 14 Stocks “About To Pop” According To Jim Cramer
• 12 Cheap Global Stocks to Buy

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