Spyglass Capital Management LLC, an investment management firm, released its second-quarter investor letter for “Spyglass Growth Strategy”. A copy of the letter can be downloaded here. Spyglass Growth Strategy appreciated 24.63% in the second quarter, significantly outperforming the Bloomberg Midcap Growth Index’s 14.05% increase, the Bloomberg 2500 Growth Index’s 19.01% gain, and the Bloomberg 500 Index’s 15.61% return for the same period. The Strategy’s performance in Q2 was a reversal from Q2 driven by easing geopolitical tensions, notably a US-Iran ceasefire, declining oil prices, and a rebound in software stocks after early-year volatility. Small caps and growth stocks outperformed, with Technology, Industrials, and Financials leading sectors. The portfolio’s earnings growth remains above 40%, while current valuations do not yet reflect this performance. Despite recent portfolio success—85% of companies exceeding revenue estimates—the overall portfolio faces multiple compression with a slight negative year-to-date return. However, the firm remains confident that fundamentals will prevail over volatility, emphasizing that the market’s short-term inefficiencies may present opportunities for value extraction. In addition, please check the Firm’s top five holdings to know its best picks in 2026.
In its Q2 2026 investor letter, Spyglass Growth Strategy highlighted CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group, Inc. (NASDAQ:CSGP), an information, analytics, and online marketplace services provider for commercial and residential property markets, detracted from the performance during the quarter. On July 30, 2026, CoStar Group, Inc. (NASDAQ:CSGP) closed at $29.46 per share, reflecting a market capitalization of $11.94 billion. CoStar Group, Inc. (NASDAQ:CSGP) posted a one-month return of -1.80%, while its shares lost 68.86% over the past 52 weeks.
Spyglass Growth Strategy stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q2 2026 investor update:
“CoStar Group, Inc. (NASDAQ:CSGP), a provider of software solutions in the global real estate industry, was a bottom contributor during the second quarter. CoStar reported first-quarter results that surpassed consensus expectations for both revenue and profitability, marking the 60th consecutive quarter of double-digit revenue growth. While we viewed the quarterly results positively, we believe the market focused on softer net new bookings which weighed on shares. We remain focused on Homes.com subscriber growth as a key component of our long-term model. We believe the stock is trading at a meaningful discount to a conservative set of expectations, but given the sustained underperformance of the stock, we continue to perform enhanced due diligence on the Company.”
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 large cap stocks to buy according to analysts. In addition, please check out our hedge fund investor letters Q2 2026 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.
