Is CoStar Group (CSGP) a Smart Long-term Buy?

Baron Partners Fund recently published its third-quarter commentary – a copy of which can be downloaded here. During the third quarter of 2020, the Baron Partners Fund returned 47.15% (institutional shares). In comparison, the benchmark S&P 500 Index was up 8.93%, while the Russell Midcap Growth Index was up 9.37%. You should check out Baron Partners Fund’s top 5 stock picks for investors to buy right now, which could be the biggest winners of 2021.

In the Q3 2020 Investor Letter, Baron Partners Fund highlighted a few stocks and CoStar Group Inc. (NASDAQ:CSGP) is one of them. CoStar Group Inc. (NASDAQ:CSGP) is a provider of information, analytics and marketing services to the commercial property industry in the United States. Year-to-date, CoStar Group Inc. (NASDAQ:CSGP) stock gained 49.3% and on December 4th it had a closing price of $893.23. Here is what Baron Partners Fund said:

“Shares of real estate information and marketing services provider CoStar Group, Inc. contributed to performance as net new sales reaccelerated quickly. Demand for CoStar’s digital marketplace businesses has grown as traditionally offline activities have increasingly shifted online during the pandemic. This growth was partially offset by slower trends in CoStar’s CRE data licensing businesses. The company has over $3.6 billion cash, which we expect to be used for market-expanding acquisitions.”


In Q2 2020, the number of bullish hedge fund positions on CoStar Group Inc. (NASDAQ:CSGP) stock increased by about 25% from the previous quarter (see the chart here), so a number of other hedge fund managers believe in CoStar’s growth potential. Our calculations showed that CoStar Group Inc. (NASDAQ:CSGP) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 216% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 121 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.