Is Red Rock Resorts (RRR) A Great Investment Choice?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first quarter 2021 investor letter – a copy of which can be downloaded here. The portfolio outpaced the Russell 2000® Index in the quarter with positive absolute results across all sectors. You can view the fund’s top 5 holdings to have a peek at their top bets for 2021.

Diamond Hill Capital, in its Q1 2021 investor letter, mentioned Red Rock Resorts, Inc. (NASDAQ: RRR), and shared their insights on the company. Red Rock Resorts, Inc. is a Las Vegas, Nevada-based gaming, development and management company that currently has a $4.7 billion market capitalization. Since the beginning of the year, RRR delivered a 61.30% return, extending its 12-month gains to 208.09%. As of May 21, 2021, the stock closed at $40.39 per share.

Here is what Diamond Hill Capital has to say about Red Rock Resorts, Inc. in its Q1 2021 investor letter:

Red Rock Resorts was another top contributor in Q1, as it has been since the pandemic-related market bottom in March 2020. Red Rock controls over half the Las Vegas locals market, where government legislation restricting greenfield development has effectively created a duopoly. Through a tough operating environment, management has meticulously controlled costs and improved the balance sheet and is delivering record margins. We believe there is tremendous pent-up demand waiting to be released amid post-pandemic reopening—on top of favorable conditions for economic expansion in Las Vegas, including an attractive tax environment driving in-migration.”

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Kaspars Grinvalds/

Our calculations show that Red Rock Resorts, Inc. (NASDAQ: RRR) does not belong in our list of the 30 Most Popular Stocks Among Hedge Funds. As of the end of the first quarter of 2021, Red Rock Resorts, Inc. was in 28 hedge fund portfolios, compared to 26 funds in the fourth quarter of 2020. RRR delivered a 38.32% return in the past 3 months.

The top 10 stocks among hedge funds returned 231.2% between 2015 and 2020, and outperformed the S&P 500 Index ETFs by more than 126 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Here you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

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