Red Rock Resorts, Inc. (RRR, Financial), an owner and operator of Las Vegas locals casinos,detracted in the second quarter due to investor concerns that a possible recession would cause a slowdown or decline in growth. We remain investors. Red Rock has seen no material change in its visitation or spend levels, and its core customer base remains solid. Its robust balance sheet provides significant financial flexibility to continue to invest in its Durango casino expansion and other projects while using excess cash for share repurchases and dividends.
From Ron Baron (Trades, Portfolio)'s Baron Focused Growth Fund second-quarter 2022 letter.
