Artisan Partners, an investment management company, released its “Artisan Mid Cap Fund” fourth quarter 2024 investor letter. A copy of the letter can be downloaded here. In the fourth quarter, the fund’s Investor Class fund ARTMX returned 5.11%, Advisor Class fund APDMX posted a return of 5.14%, and Institutional Class fund APHMX returned 5.14%, compared to an 8.14% return for the Russell Midcap Growth Index. US equities achieved solid Q4 gains, concluding a strong year. Following Donald Trump’s election win, optimism surged over deregulation and tax cuts. However, concerns about inflation from proposed tariffs and immigration policies emerged in December, introducing market volatility. Despite this, markets ended 2024 with strong gains, marking one of the best two-year performance stretches in decades. In addition, please check the fund’s top five holdings to know its best picks in 2024.
In its fourth quarter 2024 investor letter, Artisan Mid Cap Fund emphasized stocks such as CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services provider for commercial and residential property markets. The one-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -2.75%, and its shares lost 13.80% of their value over the last 52 weeks. On March 4, 2025, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $75.58 per share with a market capitalization of $31.88 billion.
Artisan Mid Cap Fund stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q4 2024 investor letter:
“We ended our investment campaigns in ON Semiconductor, Monday.com and CoStar Group, Inc. (NASDAQ:CSGP) during the quarter. CoStar Group is a leading provider of information services to the global real estate industry, with a dominant position in commercial real estate through platforms such as Apartments.com. Recently, the company expanded in to the residential market with the launch of Homes.com, aiming to capture market share by offering a business model more aligned with listing agents than other existing portals. Despite significant investment in sales and marketing, Homes.com has struggled to gain traction. Coupled with headwinds in CoStar’s core business driven by a weak commercial real estate cycle, the anticipated growth has not materialized, and we decided to exit the position.”
An elegant residential building set against the modern skyline.
CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 56 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the fourth quarter which was 43 in the previous quarter. For the full year of 2024, CoStar Group, Inc. (NASDAQ:CSGP) reported revenue of $2.74 billion, reflecting an 11% increase from 2023. In the fourth quarter of 2024, revenue reached $709 million, also showing an 11% increase compared to the Q4 2023. While we acknowledge the potential of CoStar Group, Inc. (NASDAQ:CSGP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
In another article, we discussed CoStar Group, Inc. (NASDAQ:CSGP) and shared Baron Partners Fund’s views on the company. In addition, please check out our hedge fund investor letters Q4 2024 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.