Here are Ace River Capital’s Updates on its Top Position, RCI Hospitality (RICK)

Soumya Eswaran

Thu, May 8, 2025, 6:41 AM 3 min read

Ace River Capital, an concern absorption company, released its first-quarter 2025 capitalist letter. A transcript of the missive tin beryllium downloaded here. The money returned -14.37% successful the archetypal quarter, compared to -4.3% and -9.5% returns for the S&P 500 (SPX) and the Russell 2000 (RTY), respectively. The firm’s extremity is to support a focused portfolio of tiny and micro-cap companies with chiseled advantages and maturation imaginable wrong their respective sectors. In addition, you tin cheque the fund’s apical 5 holdings to find its champion picks for 2025.

In its first-quarter 2025 capitalist letter, Ace River Capital highlighted stocks specified arsenic RCI Hospitality Holdings, Inc. (NASDAQ:RICK). Headquartered successful Houston, Texas, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) owns and operates clubs and restaurants. The one-month instrumentality of RCI Hospitality Holdings, Inc. (NASDAQ:RICK) was 9.47%, and its shares mislaid 20.91% of their worth implicit the past 52 weeks. On May 7, 2025, RCI Hospitality Holdings, Inc. (NASDAQ:RICK) banal closed astatine $40.82 per stock with a marketplace capitalization of $361.946 million.

Ace River Capital stated the pursuing regarding RCI Hospitality Holdings, Inc. (NASDAQ:RICK) successful its Q1 2025 capitalist letter:

"The fund’s apical presumption is RCI Hospitality Holdings, Inc. (NASDAQ:RICK). RICK is the lone publically traded proprietor of big nightclubs successful the US. Currently they ain 57 clubs crossed 13 states and an further 14 sports-bar restaurants with the “Bombshells” concept. With fewer municipalities issuing caller big amusement licenses these businesses relation arsenic section monopolies with fantabulous portion economics. There are astir 2200 clubs crossed the state and RICK estimates that 500 of which would conscionable their criteria for acquisition. These clubs person constricted imaginable buyers with RICK establishing themselves arsenic the purchaser of prime for immoderate nine owners looking to sell. This provides a agelong runway for growth.

A bustling nightclub filled with energy, illuminated by mesmerizing lights and the thumping bushed of the creation music.