Conestoga Capital Advisors, an asset management company, released its “Mid-Cap Strategy” second-quarter 2024 investor letter. A copy of the letter can be downloaded here. The second quarter of 2024 may be regarded as a time of moderation. Economic indicators largely reflected slowing growth and easing inflation. The moderation theme also drives equity markets. Large-cap stocks, as measured by the S&P 500, rose 3.9% in the second quarter, however, small-cap stocks lagged again, with the Russell 2000 Index declining -3.3% and the Russell 2000 Growth Index declining -2.9%. The Mid Cap Strategy declined -4.22% net-of-fees in the quarter compared to a -3.21% return for the Russell Mid Cap Growth Index. Sector allocation effects were slightly positive, while stock selection effects detracted from relative returns. Higher-quality companies benefited from stylistic factors, which helped to boost relative returns. In addition, please check the fund’s top five holdings to know its best picks in 2024.
Conestoga Capital Advisors highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP) in the second quarter 2024 investor letter. CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services provider for commercial and residential property markets. CoStar Group, Inc.’s (NASDAQ:CSGP) one-month return was -1.95%, and its shares lost 5.71% of their value over the last 52 weeks. On August 16, 2024, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $74.04 per share with a market capitalization of $30.343 billion.
Conestoga Capital Advisors stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q2 2024 investor letter:
“CoStar Group, Inc. (NASDAQ:CSGP): CSGP reported weaker-than-expected core bookings, impacted by challenging market conditions and elevated marketing expenses. Revenue growth missed consensus expectations and residential bookings declined. Despite these challenges, we believe the outlook remains positive with strong Homes.com momentum and successful OnTheMarket integration. Management reaffirmed 2027 targets for revenue and EBITDA margins. Ongoing digital enhancements and robust cash reserves should support long-term growth, with the residential business potentially driving future valuation improvements.”
An elegant residential building set against the modern skyline.
CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 42 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the first quarter which was 40 in the previous quarter. The second quarter revenue of CoStar Group, Inc. (NASDAQ:CSGP) was $678 million, reflecting a 12% increase year-over-year. 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 FinTech Fund’s views on the company. In addition, please check out our hedge fund investor letters Q2 2024 page for more investor letters from hedge funds and other leading investors.
READ NEXT: Michael Burry Is Selling These Stocks and A New Dawn Is Coming to US Stocks.
Disclosure: None. This article is originally published at Insider Monkey.
