RH (RH): Billionaire Brian Higgins Opens New Position

We just covered Billionaire Brian Higgins’ 10 Stock Picks With Huge Upside Potential and RH (NYSE:RH) ranks 6th on this list.

RH (NYSE:RH) is a new addition to the 13F portfolio of King Street Capital. Filings for the fourth quarter of 2025 show that the fund owns 87,000 shares in the company. RH operates as a retailer and lifestyle brand in the home furnishings market in the United States, Canada, the United Kingdom, Germany, Belgium, and Spain. It offers merchandise in various categories, including furniture, lighting, textiles, bath ware, décor, and outdoor and garden furnishings, as well as baby, child, and teen furnishings.

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RH (NYSE:RH) CEO Gary Friedman has argued that his firm is at peak investment during a housing trough. Under this plan, the company is aggressively opening new Design Galleries in Europe, in places like Madrid, London, and Brussels, and expanding into luxury ecosystem services, like RH Media and RH Guesthouses. Smart money managers often buy the stock during these high-expense periods, betting that when the housing market recovers and the investment cycle scales back, profit margins will explode. Despite a difficult macroeconomic environment, RH has significantly outperformed its peers in the furniture and home décor space. In fiscal 2025, the firm achieved 8% revenue growth, which was 8 to 30 percentage points higher than its industry competitors.

While we acknowledge the risk and potential of RH as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than RH and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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