Andvari Associates, an investment management firm, released its first-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the first quarter the fund returned 7.2% net of fees compared to the SPDR S&P 500 ETF’s 4.3% decline. In addition, you can check the fund’s top 5 holdings to find out its best picks for 2025.
In its first quarter 2025 investor letter, Andvari Associates 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 2.39%, and its shares lost 13.18% of their value over the last 52 weeks. On April 8, 2025, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $78.70 per share with a market capitalization of $33.193 billion.
Andvari Associates stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q1 2025 investor letter:
“CoStar Group, Inc. (NASDAQ:CSGP) continues their investments in the space of online residential property portals. They own fast-growing challenger brands in the U.S. and U.K. in the form of Homes.com and OnTheMarket, respectively. During the past quarter, CoStar also made a bid to acquire Domain Group, the owner of online portals for residential and commercial real estate listings in Australia. Andvari continues to root for CoStar’s success in the residential space, but we do not think success is necessary to achieve good shareholder returns going forward. We believe the market is slightly undervaluing CoStar’s commercial real estate business lines because heavy investments in the residential category have decreased overall margins. If CoStar can generate value from residential, that will be excellent. If not, the investments will end and company-wide margins will shoot up dramatically, and hopefully the share price as well.”
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 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.
We covered CoStar Group, Inc. (NASDAQ:CSGP) in another article, where we shared the list of top stocks to buy according to Akre Capital Management. In addition, please check out our hedge fund investor letters Q1 2025 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.