Strong Results Lifted CoStar Group. (CSGP) in Q3

Brown Advisory, an investment management company, released its “Brown Advisory Large-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy returned -0.88% (net) during the third quarter, underperforming the benchmark, the Russell 1000 Growth Index. Even though the portfolio has significant exposure to AI, its underweight to the most speculative momentum-driven parts of the trade was a headwind to performance. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Large-Cap Growth Strategy highlighted 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 for CoStar Group, Inc. (NASDAQ:CSGP) was 2.46%, and its shares lost 10.40% over the last 52 weeks. On December 03, 2025, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $69.02 per share, with a market capitalization of $29.25 billion.

Brown Advisory Large-Cap Growth Strategy stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its third quarter 2025 investor letter:

"From a sector perspective, stock selection within the Real Estate sector positively contributed to relative performance, driven by strong results from CoStar Group, Inc. (NASDAQ:CSGP). The company delivered robust quarterly results and saw renewed momentum across its residential (Homes.com) and commercial (CoStar Suite) platforms. Bookings reaccelerated, and the company continues to expand its salesforce and product offerings, leading to an 18% stock gain in July."

CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 57 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the third quarter, compared to 59 in the previous quarter. CoStar Group, Inc. (NASDAQ:CSGP) revenue reached $834 million in Q3 2025, marking a 20% year-over-year increase. While we acknowledge the potential of CoStar Group, Inc. (NASDAQ:CSGP) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered CoStar Group, Inc. (NASDAQ:CSGP) and shared the list of best QQQ stocks to buy according to Wall Street analysts. In addition, please check out our hedge fund investor letters Q3 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.