Is CoStar Group (CSGP) a Multibagger Stock?

Baron Funds, an investment management company, released its “Baron Real Estate Fund” fourth quarter 2022 investor letter. A copy of the same can be downloaded here. In the fourth quarter, the fund rose 6.17% (Institutional Shares) compared to a 4.90% return for the MSCI US REIT Index (the “REIT Index”) and an 8.71% return for the MSCI USA IMI Extended Real Estate Index (the “MSCI Real Estate Index”). For 2022, the fund declined 28.44% compared to a 23.84% decline for the MSCI Real Estate Index and a 25.37% decline for the REIT Index. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Baron Funds highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP) in the fourth quarter 2022 investor letter. Headquartered in Washington, the District of Columbia, CoStar Group, Inc. (NASDAQ:CSGP) provides information, analytics, and marketplace services to commercial real estate. On January 31, 2023, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $77.90 per share. One-month return of CoStar Group, Inc. (NASDAQ:CSGP) was -0.13%, and its shares gained 9.72% of their value over the last 52 weeks. CoStar Group, Inc. (NASDAQ:CSGP) has a market capitalization of $31.681 billion.

Baron Funds made the following comment about CoStar Group, Inc. (NASDAQ:CSGP) in its Q4 2022 investor letter:

“The shares of CoStar Group, Inc. (NASDAQ:CSGP) performed well in the fourth quarter following strong quarterly business results. The company is the leading provider of information, analytics, and marketing services to the real estate industry. Based on the current valuation of its shares and our expectation for future growth, we believe CoStar’s shares have the potential to appreciate by 100% in the next three to four years.”

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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, 40 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the third quarter, which was 47 in the previous quarter.

We discussed CoStar Group, Inc. (NASDAQ:CSGP) in another article and shared Artisan Partners’ views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.