Does CoStar Group (CSGP) Have Huge Growth Potential?
Andvari Associates, an investment management company, released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. For the full year of 2022, the fund was down 33.8% net of fees compared to the SPDR S&P 500 ETF, which was down 18.2%. In addition, please check the fund’s top five holdings to know its best picks in 2022.
Andvari Associates highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP) in the fourth quarter 2022 investor letter. Headquartered in Washington, the District of Columbia, CoStar Group, Inc. (NASDAQ:CSGP) provides information, analytics, and marketplace services to commercial real estate. On January 31, 2023, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $77.90 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -0.13%, and its shares gained 9.72% of their value over the last 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $31.681 billion.
Andvari Associates made the following comment about CoStar Group, Inc. (NASDAQ:CSGP) in its Q4 2022 investor letter:
"CoStar Group, Inc. (NASDAQ:CSGP) is a provider of online real estate marketplaces (LoopNet and Apartments.com are the best known ones) as well as data and analytics services to the commercial real estate industry. CoStar’s products are essential to its customers, the products provide a high value relative to their cost, and revenues are mostly recurring. 93% of the top 1,000 commercial real estate brokerage firms are CoStar customers. Virtually all large apartment complex owners advertise their inventory on Apartments.com. If you have commercial property to sell or lease, the best place to go is CoStar’s LoopNet because they have 20x the monthly web traffic of its next closest competitor.
Andy Florance is the CEO and founder. He started the company in 1987 and has grown revenues to over $2 billion annually. The company has a market value of $32 billion. There is still room for decades of growth and reinvestment: CoStar can grow much larger in Europe; it has an online real estate auction platform called Ten-X that can become much larger; and CoStar might soon become a real challenger to Zillow in the online residential real estate market."
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CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 40 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the third quarter, which was 47 in the previous quarter.
We discussed CoStar Group, Inc. (NASDAQ:CSGP) in another article and shared Artisan Partners' views on the company. In addition, please check out our hedge fund investor letters Q4 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.
