RCI Hospitality (RICK): Ace River Capital’s Top Position


Ace River Capital, an investment management company, released its fourth quarter 2023 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund delivered 4.44% compared to an 11.7% and 14% return for the S&P 500 (SPX) and the Russell 2000 (RTY) respectively. For the full year, the fund delivered a -28.61% return vs 24% and 15.9% for the indexes, respectively. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.

Ace River Capital featured stocks such as RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in the fourth quarter 2023 investor letter. Headquartered in Houston, Texas, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) owns and operates clubs and restaurants. On January 10, 2024, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) stock closed at $62.78 per share. One-month return of RCI Hospitality Holdings, Inc. (NASDAQ:RICK) was -7.39%, and its shares lost 34.92% of their value over the last 52 weeks. RCI Hospitality Holdings, Inc. (NASDAQ:RICK) has a market capitalization of $587.601 million.

Ace River Capital stated the following regarding RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in its fourth 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 56 clubs across 13 states and an additional 13 sports-bar restaurants with the “Bombshells” concept that has recently begun franchising. With few municipalities issuing new adult entertainment licenses these businesses function as local monopolies with excellent unit economics. With the construction of two Colorado casinos underway, the long runway of adult night club acquisition targets, the growth potential and spin off value of the Bombshells concept and finally the potential upside of the “admireMe” OnlyFans type website, I expect this to remain my top position for the foreseeable future.”

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RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 11 hedge fund portfolios held RCI Hospitality Holdings, Inc. (NASDAQ:RICK) at the end of third quarter which was 14 in the previous quarter.

We discussed RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in another article and shared the list of most promising small-cap stocks according to analysts. In addition, please check out our hedge fund investor letters Q4 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.



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