Diamond Hill Capital released its second-quarter 2025 investor letter, showing a 5.60% (gross) and 5.37% (net) return for the Small-Mid Cap Fund, compared to the Russell 2500 Index’s 8.59% return. Red Rock Resorts, Inc. was highlighted as a top pick, with a one-month return of 4.01% and shares closing at $57.13 on August 11, 2025.

The fund’s second-quarter letter praised Red Rock Resorts, Inc. as a top contributor to return, noting its strong business model and attractive valuation. The casino operator, controlling over half the Las Vegas locals market, saw a boost in shares due to investor response.

Red Rock Resorts, Inc. (NASDAQ:RRR) is not among the 30 Most Popular Stocks Among Hedge Funds, but 26 hedge fund portfolios held it at the end of Q1 2025. While acknowledging its potential, the fund sees greater upside potential and less downside risk in certain AI stocks. Check out more hedge fund investor letters from Q2 2025 for additional insights.

Read more at Yahoo Finance: Red Rock Resorts (RRR) Demonstrated Its Resilient Business Model in Q2