Investment management company Bireme Capital recently released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the fund outperformed and was up 2.5% net of fees compared to a -4.9% decline for the S&P 500 Index. Since inception, the strategy returned 22.7% net annually compared to a 12.0% annual return for the S&P 500 Index. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Bireme Capital highlighted stocks like RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in the Q3 2022 investor letter. Based in Houston, Texas, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is a US-based company that operates through Nightclubs, Bombshells, and Other segments. On November 7, 2022, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) stock closed at $81.15 per share. One-month return of RCI Hospitality Holdings, Inc. (NASDAQ:RICK) was 17.34% and its shares gained 8.71% of their value over the last 52 weeks. RCI Hospitality Holdings, Inc. (NASDAQ:RICK) has a market capitalization of $749.154 million.
Bireme Capital made the following comment about RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in its Q3 2022 investor letter:
“The best performing stock in the portfolio during the third quarter was RCI Hospitality Holdings, Inc. (NASDAQ:RICK), a nightclub and restaurant company, which gained 35%. Even after this strong performance, RICK trades at only 14x earnings — a reasonable valuation for a company which we expect will continue to grow rapidly in the years ahead. The nightclub business is performing extremely well, with T12 revenues at June quarter end up 72% YoY, benefitting from a sizable acquisition completed in late 2021. T12 operating income in the segment was $67m, up 81% vs last year and 35% above the peak level pre-COVID. The restaurant segment, which consists of the military-themed “Bombshells” restaurants, did $60m of sales and $12m of operating income over the past year. The concept has significant growth potential, with only eleven locations open and four more already under development.”
Photo by Clem Onojeghuo on Unsplash
RCI Hospitality Holdings, Inc. (NASDAQ:RICK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 15 hedge fund portfolios held RCI Hospitality Holdings, Inc. (NASDAQ:RICK) at the end of the second quarter which was 19 in the previous quarter.
We discussed RCI Hospitality Holdings, Inc. (NASDAQ:RICK) in another article and shared Greystone Capital Management’s views on the company. In addition, please check out our hedge fund investor letters Q3 2022 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.