Is CoStar Group Inc (CSGP) Worthy of Your Portfolio?

Consequently, key money managers were leading the bulls’ herd. LMR Partners, led by Ben Levine, Andrew Manuel and Stefan Renold, established the most outsized position in CoStar Group Inc (NASDAQ:CSGP). LMR Partners had $3.3 million invested in the company at the end of the quarter. Matthew Tewksbury’s Stevens Capital Management also initiated a $1.2 million position during the quarter. The following funds were also among the new CSGP investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, John Overdeck and David Siegel’s Two Sigma Advisors, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as CoStar Group Inc (NASDAQ:CSGP) but similarly valued. We will take a look at Yandex NV (NASDAQ:YNDX), Spectrum Brands Holdings, Inc. (NYSE:SPB), Crown Holdings, Inc. (NYSE:CCK), and Qorvo Inc (NASDAQ:QRVO). This group of stocks’ market values are similar to CSGP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
YNDX 31 389013 6
SPB 30 615857 7
CCK 35 705808 5
QRVO 27 198381 5

As you can see these stocks had an average of 31 investors with bullish positions and the average amount invested in these stocks was $477 million, compared to $304 million in CSGP’s case. Crown Holdings, Inc. (NYSE:CCK) is the most popular stock in this table. On the other hand Qorvo Inc (NASDAQ:QRVO) is the least popular one with only 27 investors holding shares. Compared to these stocks CoStar Group Inc (NASDAQ:CSGP) is even less popular than Qorvo Inc (NASDAQ:QRVO). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.