Should You Now Consider Selling Your Red Rock Resorts (RRR) Shares?

Diamond Hill Capital, an investment management firm, published its “Diamond Hill Small Cap Fund” first-quarter 2022 investor letter – a copy of which can be downloaded here. Diamond Hill invests on behalf of clients through a shared commitment to its valuation-driven investment principles, long-term perspective, capacity discipline, and client alignment. Amid a rocky market environment, the portfolio’s negative returns still outpaced the Russell 2000 Index by a healthy margin in Q1.  Try to take some time looking at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Diamond Hill Small Cap Fund mentioned Red Rock Resorts, Inc. (NASDAQ:RRR) and explained its insights for the company. Founded in 2015, Red Rock Resorts, Inc. (NASDAQ:RRR) is a Las Vegas, Nevada-based gaming, development and management company with a $1.9 billion market capitalization. Red Rock Resorts, Inc. (NASDAQ:RRR) delivered a -41.03% return since the beginning of the year, while its 12-month returns are down by -21.22%. The stock closed at $32.44 per share on July 12, 2022.

Here is what Diamond Hill Small Cap Fund has to say about Red Rock Resorts, Inc. (NASDAQ:RRR) in its Q1 2022 investor letter:

“Other detractors in Q1 included Red Rock Resorts (NASDAQ:RRR). Following a strong finish to 2021, Las Vegas locals’ casino operator Red Rock Resorts pulled backed on omicron concerns as well as inflationary risks related to the company’s Durango development.”

Photo by Kvnga on Unsplash

Our calculations show that Red Rock Resorts, Inc. (NASDAQ:RRR) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. Red Rock Resorts, Inc. (NASDAQ:RRR) was in 28 hedge fund portfolios at the end of the first quarter of 2022, compared to 23 funds in the previous quarter. Red Rock Resorts, Inc. (NASDAQ:RRR) delivered a -27.02% return in the past 3 months.

In March 2022, we also shared another hedge fund’s views on Red Rock Resorts, Inc. (NASDAQ:RRR) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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