Is it a Smart Move to Invest in Red Rock Resorts (RRR)?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter, delivering nearly a 2% positive return against the index’s negative return and adding to year-to-date outperformance.  You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Diamond Hill Small Cap Fund, in its Q3 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 gaming, development, and management company with a $3.4 billion market capitalization. RRR delivered a 102.52% return since the beginning of the year, while its 12-month returns are up by 133.47%. The stock closed at $50.71 per share on November 19, 2021.

Here is what Diamond Hill Small Cap Fund has to say about Red Rock Resorts, Inc. in its Q3 2021 investor letter:

“On an individual holdings’ basis, top contributors to return included Red Rock Resorts. Red Rock, also a top contributor year to date, controls over half the Las Vegas locals’ casino market and executed very well amid pandemic-related restrictions—controlling costs by selectively reopening facilities. Its margins have proven resilient as it continues benefiting from strong demand for gaming across the Las Vegas locals’ market, delivering record cash flows.”

Pixabay/Public Domain

Based on our calculations, Red Rock Resorts, Inc. (NASDAQ: RRR) was not able to clinch a spot in our list of the 30 Most Popular Stocks Among Hedge Funds. RRR was in 26 hedge fund portfolios at the end of the first half of 2021, compared to 28 funds in the previous quarter. Red Rock Resorts, Inc. (NASDAQ: RRR) delivered a 27.28% return in the past 3 months.

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