Should You Now Consider Selling Your CoStar (CSGP) Stake Before it’s Too Late?

Cooper Investors, an investment management firm, published its “Global Equities Fund (Hedged)” first quarter 2022 investor letter – a copy of which can be downloaded here. After a strong 2021, the Fund has endured a tough start to the year, returning -12.45%. In simple terms, the very narrow parts of the market doing well year to date (oil and gas, miners, some banks) are areas in which the fund is underweight, whereas many of the businesses we do own got dragged into a period of indiscriminate selling early in the quarter. Try to spend some time taking a look at the fund’s top 5 holdings to be informed about their best picks for 2022.

In its Q1 2022 investor letter, Cooper Investors Global Equities Fund mentioned CoStar Group, Inc. (NASDAQ:CSGP) and explained its insights for the company. Founded in 1987, CoStar Group, Inc. (NASDAQ:CSGP)  is a Washington, D.C.-based commercial property company with a $24.1 billion market capitalization. CoStar Group, Inc. (NASDAQ:CSGP)  delivered a -22.73% return since the beginning of the year, while its 12-month returns are down by -32.51%. The stock closed at $61.07 per share on April 18, 2022.

Here is what Cooper Investors Global Equities Fund has to say about CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2022 investor letter:

“CoStar was also sold to fund new investments. The business is entering a period of significant capital deployment that is more extensive than we expected, representing a change to our original value propositions. While these investment phases make sense for longer-term strategic positioning, they also raise execution risk and push free cash flow growth further to the right at a time when other Watchlist stocks have been on sale.”

Our calculations show that CoStar Group, Inc. (NASDAQ:CSGP) fell short and didn’t make it on our list of the 30 Most Popular Stocks Among Hedge Funds. CoStar Group, Inc. (NASDAQ:CSGP) was in 49 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 29 funds in the previous quarter. CoStar Group, Inc. (NASDAQ:CSGP) delivered a -18.06% return in the past 3 months.

In February 2022, we published an article that includes CoStar Group, Inc. (NASDAQ:CSGP) in another article. You can find other investor letters from hedge funds and prominent investors on our hedge fund investor letters 2022 Q1 page.

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