Here’s Why CoStar Group (CSGP) Outperformed in Q2
Conestoga Capital Advisors, an asset management company, released its “Mid Cap Strategy” second-quarter 2023 investor letter. A copy of the same can be downloaded here. The Mid Cap Composite rose 8.70% net of fees in the second quarter, outperforming the Russell Midcap Growth Index’s 6.23% return. Year-to-date, the strategy returned 19.82% net of fees compared to a 15.94% return for the benchmark. The strategy benefited from the positive stock selection in five of the seven sectors in which it is invested. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Conestoga Mid Cap Strategy highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP) in the second quarter 2023 investor letter. Headquartered in Washington, the District of Columbia, CoStar Group, Inc. (NASDAQ:CSGP) provides information, analytics, and online marketplace services to commercial and residential property markets. On August 10, 2023, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $80.73 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -9.59%, and its shares gained 7.55% of their value over the last 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $32.981 billion.
Conestoga Mid Cap Strategy made the following comment about CoStar Group, Inc. (NASDAQ:CSGP) in its second quarter 2023 investor letter:
"CoStar Group, Inc. (NASDAQ:CSGP)): CSGP reported solid 1Q23 results with revenues up 13% and adjusted EBITDA was up 21%. The company also slightly increased its 2023 full-year guidance for revenue and EBITDA. The company’s CoStar Suite product posted 13% revenue growth in very challenging commercial real estate market. The company did lower guidance for this segment from 12% to 10% for 2023. Nonetheless, investors focused on the resiliency in this business and the company showed strong traffic acceleration in the residential business. Given the heavy level of investment in this business, investors are squarely focused on the traffic growth and achieving critical mass in this market."
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CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the first quarter which was 46 in the previous quarter.
We discussed CoStar Group, Inc. (NASDAQ:CSGP) in another article and shared Baron Asset Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2023 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.
