Baron Funds, an investment management company, released its “Baron Asset Fund” second quarter 2023 investor letter. A copy of the same can be downloaded here. U.S. equities continued their upward trend in the second consecutive quarter. The rise was led by the outsized performance of a few large technology companies, partly driven by the hype surrounding their potential benefits from the widespread adoption of artificial intelligence (AI). Against this backdrop, the Baron Asset Fund increased by 3.63% (Institutional Shares) trailing Russell Midcap Growth Index’s 6.23% returns. The underperformance of certain stocks affected the fund in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2023.
Baron Asset Fund 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 July 26, 2023, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $84.38 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -6.37%, and its shares gained 18.98% of their value over the last 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $34.473 billion.
Baron Asset Fund made the following comment about CoStar Group, Inc. (NASDAQ:CSGP) in its second quarter 2023 investor letter:
“CoStar Group, Inc. (NASDAQ:CSGP) provides data analytics and marketing services to the commercial and residential real estate industries. Its shares increased after reporting robust financial performance during its recent quarter. Overall net new sales grew 18%, driven by accelerated bookings in the company’s multifamily segment, which expanded 110% year-over-year, albeit partially offset by slower growth in its commercial real estate segment. We are encouraged by early signs of traction in CoStar’s nascent residential offering. We estimate that CoStar invested $230 million in this initiative in 2022 and is targeting a total investment approaching $500 million in 2023. While this is a significant upfront commitment, we believe the residential market represents a transformative opportunity for the company. We believe CoStar’s proprietary data, broker-oriented approach, and best-in-class management uniquely position the company to succeed in this large adjacent 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.
In a previous article we discussed CoStar Group, Inc. (NASDAQ:CSGP) and shared the list of best commercial real estate stocks to buy according to hedge funds. 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.
