Is CoStar Group (CSGP) A Smart Long-Term Buy?

Harding Loevner, an investment management firm, published its “Global Equity Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.31% was recorded by the fund for the third quarter of 2021, trailing its Benchmark, the MSCI World Index, which returned 0.09% for the same period. You can take a look at the fund’s top 5 holdings to have an idea about their best picks for 2021.

Harding Loevner Global Equity Fund, in its Q3 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 $31.1 billion market capitalization. CSGP delivered a -14.78% return since the beginning of the year, while its 12-month returns are down by -11.81%. The stock closed at $78.77 per share on December 03, 2021.

Here is what Harding Loevner Global Equity Fund has to say about CoStar Group, Inc.  in its Q3 2021 investor letter:

“A new holding is US-based CoStar, the dominant player in information services for the commercial real estate industry and online classified ads for commercial property. Its data and analytics business, which has over 90% market share in the US, mines a proprietary database of commercial real estate that spans office, industrial, retail, multi-family, and land. Its online marketplace business, with over 50% market share, owns valuable websites including Apartments.com for apartment listings and LoopNet for business property listings. Over 80% of its revenue is recurring, as its offerings are typically integrated with the workflow of its customers: brokers, owners, developers, and property managers.”

Based on our calculations, CoStar Group, Inc. (NASDAQ: CSGP) was not able to clinch a spot in 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 -10.35% return in the past 3 months.

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