Investment management company Vulcan Value Partners recently released its second quarter 2024 investor letter. A copy of the letter can be downloaded here. The quarterly results were mixed. The firm faced stock price volatility with some of the companies in its portfolios but managed this by adhering to discipline and capitalizing on the volatility to invest in companies with improved price-to-value ratios. In the quarter, the fund’s Large Cap Composite returned -2.9% net of fees and expenses, the Small Cap Composite returned -0.1 % net, the Focus Composite returned -0.4% net, the Focus Plus composite returned -0.8% and the All-Cap Composite returned 1.1% net. For more information on the fund’s best picks in 2024, please check its top five holdings.
Vulcan Value Partners 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 5.89%, and its shares lost 3.88% of their value over the last 52 weeks. On July 26, 2024, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $78.51 per share with a market capitalization of $32.175 billion.
Vulcan Value Partners stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q2 2024 investor letter:
“There was one material detractor: CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group is a premier information services provider to the commercial and residential real estate industries. It is founder led, sells access to mission critical data and information assets, and is supported by a largely recurring, subscription-based revenue model. While it is difficult to pinpoint the exact reason for the stock’s underperformance over the last quarter, its operating results continue to impress us. Therefore, with a stable value, we followed our discipline and added to our position.”
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, 40 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the first quarter which was 36 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 Durable Advantage 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.
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Disclosure: None. This article is originally published at Insider Monkey.
