Is Ryman Hospitality Properties (RHP) a Good Short Opportunity?

Prosper Stars & Stripes, a long/short equity fund, recently released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund underperformed and generated a net return of -9.7% compared to a total return of -9.5% for the long-only small cap Russell 2000 Index (the “Russell”), and a total return of 0.2% for the long/short equity hedge fund peer group represented by the HFRX Equity Hedge Index (the “HFRX”). A combination of factors led the composite to underperform compared to its net exposure at the start of the year. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Prosper Stars & Stripes Fund highlighted stocks such as Ryman Hospitality Properties, Inc. (NYSE:RHP). Ryman Hospitality Properties, Inc. (NYSE:RHP) is a lodging and hospitality real estate investment trust. The one-month return of Ryman Hospitality Properties, Inc. (NYSE:RHP) was 0.71%, and its shares lost 1.37% of their value over the last 52 weeks. On June 16, 2025, Ryman Hospitality Properties, Inc. (NYSE:RHP) stock closed at $97.68 per share, with a market capitalization of $6.153 billion.

Prosper Stars & Stripes Fund stated the following regarding Ryman Hospitality Properties, Inc. (NYSE:RHP) in its Q1 2025 investor letter:

“The changes and disruptions in the economy also created short opportunities. After a period of above average growth, we believe leisure spending is likely to come under some pressure. One example that we see particular risk in is Ryman Hospitality Properties, Inc. (NYSE:RHP). RHP builds large hotels that cater to businesses and vacations. We have seen corporate spending come under pressure, and we believe this will result in weaker forward bookings when the company reports on its first quarter.”

An interior shot of the Grand Ole Opry House, showing the iconic country music brand and its architechtural grandeur.

Ryman Hospitality Properties, Inc. (NYSE:RHP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held Ryman Hospitality Properties, Inc. (NYSE:RHP) at the end of the first quarter, which was 35 in the previous quarter. While we acknowledge the potential of Ryman Hospitality Properties, Inc. (NYSE:RHP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Ryman Hospitality Properties, Inc. (NYSE:RHP) and shared billionaire Mario Gabelli’s small-cap stock picks with huge upside potential. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of RHP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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