TimesSquare Capital Management, an equity investment management company, released its “U.S. Mid Cap Growth Strategy” first-quarter 2026 investor letter. A copy of the letter can be downloaded here. The Strategy fell 7.72% (net) in the quarter compared to -6.35% for the Russell Midcap Growth Index. In the first quarter, markets navigated geopolitical tensions and economic resilience alongside temporary global tariffs. High oil prices and supply chain disruptions followed U.S. and Israeli involvement in Iran, prompting a shift to safer assets and a reevaluation of supply chains and energy dependencies. Central banks maintained steady policies despite energy-driven inflation. In this environment, the Strategy remains focused on disciplined management teams with durable competitive advantages. Please review the Strategy’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, TimesSquare Capital U.S. Mid Cap Growth Strategy highlighted CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services provider for commercial and residential property markets. On June 30, 2026, CoStar Group, Inc. (NASDAQ:CSGP) closed at $28.32 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -15.21%, and its shares lost 65.22% over the past 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $11.56 billion.
TimesSquare Capital U.S. Mid Cap Growth Strategy stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2026 investor letter:
“CoStar Group, Inc. (NASDAQ:CSGP) provides information, analytics, and marketplace services to the real estate industry. Reported solid fourth quarter results and reiterated guidance for 2026, although net new bookings were a touch light of buy-side expectations. Trends in the core business remain strong, and profitability continues to outpace guidance and estimates. Its shares tumbled -40% in the quarter.”
Copyright: oscity / 123RF Stock Photo
CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 62 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the first quarter, up from 58 in the previous quarter. While we acknowledge the risk and potential of CoStar Group, Inc. (NASDAQ:CSGP) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CoStar Group, Inc. (NASDAQ:CSGP) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered CoStar Group, Inc. (NASDAQ:CSGP) and shared the list of best NASDAQ stocks with high upside potential. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
Disclosure: None. This article is originally published at Insider Monkey.
