Should You Hold RCI Hospitality Holdings (RICK)?
Ace River Capital, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. In the second quarter, the fund delivered 3.73% compared to an 8.74% return for the S&P 500 (SPX) and a 5.2% return for the Russell 2000 (RTY). In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Ace River Capital highlighted stocks like RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in the second quarter 2023 investor letter. Headquartered in Houston, Texas, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) owns and operates clubs and restaurants. On July 21, 2023, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) stock closed at $69.41 per share. One-month return of RCI Hospitality Holdings, Inc. (NASDAQ:RICK) was -5.85%, and its shares gained 29.54% of their value over the last 52 weeks. RCI Hospitality Holdings, Inc. (NASDAQ:RICK) has a market capitalization of $ 661.143 million.
Ace River Capital made the following comment about RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in its second quarter 2023 investor letter:
"The fund’s top position is RCI Hospitality Holdings, Inc. (NASDAQ:RICK). RICK is the only publicly traded owner of adult nightclubs in the US. Currently they own 54 clubs across 13 states and an additional 13 sports-bar restaurants with the “Bombshells” concept that has recently began franchising. With few municipalities issuing new adult entertainment licenses these businesses function as local monopolies with excellent unit economics.
RICK has recently become positioned to open a Club/Casino/Steakhouse in Central City Colorado. I believe that investment will perform well and have a high ROI for the company in addition to opening a new path to allocate capital. Please see Q1 letter for more information on this position."
Credit: Park Hotels & Resorts
RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held RCI Hospitality Holdings, Inc. (NASDAQ:RICK) at the end of first quarter which was 15 in the previous quarter.
We discussed RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in another article and shared Ace River Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
