5 Best Small-Cap Value Stocks to Buy According to Bares Capital

2. CoStar Group, Inc. (NASDAQ:CSGP)

Bares Capital Management’s Stake: $103 Million

CoStar Group, Inc. (NASDAQ:CSGP) is a long-term holding in the 13F portfolio of Bares Capital. The fund first disclosed a stake in the company in the second quarter of 2016. This position comprised a little over 26 million shares. By the second quarter of 2018, the fund had grown this stake to more than 67 million shares. Thereafter, it started trimming the position, reducing it to just under 650,000 shares by the end of 2024. Filings for the third quarter of 2025 show that the fund owned 1.2 million shares in the firm. The company provides information, analytics, and online marketplace services to real estate and related business communities in the United States, Australia, Canada, Europe, the Asia Pacific, and Latin America.

CoStar Group, Inc. (NASDAQ:CSGP) is making an aggressive pivot towards profitability. In its Q1 report, the firm doubled its Adjusted EBITDA year-over-year to $132 million, beating its own high-end guidance by $17 million. Management raised its full-year 2026 Adjusted EBITDA guidance to $780 million to $820 million. Hedge funds view this raise as a sign that the company has successfully moved past the peak spending required for its residential expansion. Elite investors are betting on the rapid scaling of Homes.com, which CoStar has positioned as a primary competitor to Zillow. Homes.com revenue grew 58% year-over-year in Q1 2026. The platform added 4,300 new members in the first three months of the year, bringing the total subscriber base to over 35,000.