Here’s Why Weitz Investment Branded CoStar Group (CSGP) a “Gold Standard”

Weitz Investment Management, an investment management firm, published its “Value Fund” fourth quarter 2021 investor letter – a copy of which can be downloaded here. In its letter, the fund mentioned that it knows very little in economics, politics, and investor psychology is predictable. The fund believes, though, that business value is (roughly) measurable and that it (eventually) exerts a gravitational pull on a company’s stock price. According to Weitz Investment, when confidence is shaken and markets are volatile, active managers have the raw material they need to add value for investors. We’re looking forward to an interesting year. Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

Weitz Investment Management, in its Q4 2021 investor letter, mentioned CoStar Group, Inc. (NASDAQ: CSGP) and discussed its stance on the firm. CoStar Group, Inc. is a Washington, D.C.-based commercial property company with a $26.6 billion market capitalization. CSGP delivered a -14.75% return since the beginning of the year, while its 12-month returns are down by -25.12%. The stock closed at $67.37 per share on January 28, 2022.

Here is what Weitz Investment Management, Inc. has to say about CoStar Group, Inc. in its Q4 2021 investor letter:

“Software companies and data providers have wonderful economics (write the program/gather the data once and sell it over and over). CoStar is the gold standard for commercial real estate data and has expanded into adjacent markets with great promise. These companies ran up to very full prices last year and deserve a breather, but their competitive positions and pricing power should allow for further upside over time.”

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Our calculations show that CoStar Group, Inc. (NASDAQ: CSGP) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. CSGP was in 29 hedge fund portfolios at the end of the third quarter of 2021, compared to 49 funds in the previous quarter. CoStar Group, Inc. (NASDAQ: CSGP) delivered a -21.71% return in the past 3 months.

In December 2021, we also shared another hedge fund’s views on CSGP in another article. You can find other letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.