Diamond Hill Capital Management Believes that Red Rock Resorts (RRR) is Well Positioned for the Long-Term

Diamond Hill Capital Management, an investment advisor, released its “Small Cap Fund” second quarter 2022 investor letter. A copy of the same can be downloaded here. The second quarter was challenging for US stocks and the Russell 2000 Index fell by more than 17%. The volatile market condition affected the fund’s portfolio performance; however, the fund performed better compared to the Russell 2000 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.

In the second quarter investor letter, Diamond Hill Capital Management discussed stocks like Red Rock Resorts, Inc. (NASDAQ:RRR). Based in Las Vegas, Nevada, Red Rock Resorts, Inc. (NASDAQ:RRR) operates as a gaming, development, and management company. On September 2, 2022, Red Rock Resorts, Inc. (NASDAQ:RRR) stock closed at $37.32 per share. One-month return of Red Rock Resorts, Inc. (NASDAQ:RRR) was -7.44%, and its shares lost 19.59% of their value over the last 52 weeks. Red Rock Resorts, Inc. (NASDAQ:RRR) has a market capitalization of $2.181 billion.

Here is what Diamond Hill Capital Management specifically said about Red Rock Resorts, Inc. (NASDAQ:RRR):

“Bottom contributors in Q2 included Red Rock Resorts, Inc. (NASDAQ:RRR), Taseko Mines and WESCO International. Shares of casino operator Red Rock Resorts traded down on questions about the health of consumers’ discretionary income in the face of rising inflation. From a long-term fundamental perspective, we believe Red Rock remains well positioned. It is the market-share leader in the Las Vegas locals’ casino market duopoly. Management also has demonstrated an ability to manage well through a challenging backdrop, including improving margins and delivering record cash flows through the pandemic.”

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Red Rock Resorts, Inc. (NASDAQ:RRR) is not on the list of 30 Most Popular Stocks Among Hedge Funds. Red Rock Resorts, Inc. (NASDAQ:RRR) was held by 21 hedge fund portfolios at the end of the second quarter compared to 28 in the previous quarter.

We discussed Red Rock Resorts, Inc. (NASDAQ:RRR) in another article and shared Diamond Hill Capital’s views on the company. You can check out our hedge fund investor letters Q2 2022 page for more investor letters from hedge funds and other prominent investors.

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