Here’s Why Parnassus Mid Cap Fund Sold CoStar Group (CSGP)

3 days ago 4

Soumya Eswaran

Tue, March 31, 2026 astatine 9:38 AM CDT 3 min read

Parnassus Investments, an concern absorption company, released the “Parnassus Mid Cap Fund” fourth-quarter 2025 capitalist letter. A transcript of the missive is disposable to download here. The Q4 2025 marked the fund’s consecutive 4th of outperformance, returning 1.17% (net of fees) successful the quarter, surpassing 0.16% instrumentality for the Russell Midcap Index. The show was supported by investments successful the Information Technology sector, arsenic good arsenic holdings successful Utilities. During the quarter, the marketplace started to turn beyond artificial intelligence. YTD, the Fund returned 12.85% (net of fees) compared to 10.60% instrumentality for the index. Looking up to 2026, the Fund is optimistic, arsenic mid-cap stocks whitethorn thrust the marketplace upward if economical maturation continues to grow beyond AI. In the lawsuit of a marketplace decline, the Fund believes that its portfolio of starring companies with coagulated fiscal positions volition supply downside protection. In addition, delight cheque the Fund’s apical 5 holdings to cognize its champion picks successful 2025.

In its fourth-quarter 2025 capitalist letter, Parnassus Mid Cap Fund highlighted stocks similar CoStar Group, Inc. (NASDAQ:CSGP). CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services supplier for commercialized and residential spot markets. On March 30, 2026, CoStar Group, Inc. (NASDAQ:CSGP) banal closed astatine $40.88 per share. One-month instrumentality of CoStar Group, Inc. (NASDAQ:CSGP) was -12.70%, and its shares mislaid 46.52% of their worth implicit the past 3 months. CoStar Group, Inc. (NASDAQ:CSGP) has a marketplace capitalization of astir $17.042 billion.

Parnassus Mid Cap Fund stated the pursuing regarding CoStar Group, Inc. (NASDAQ:CSGP) successful its 4th fourth 2025 capitalist letter:

"CoStar Group, Inc. (NASDAQ:CSGP) shares detracted owed to capitalist concerns implicit accrued contention from Google successful the home-listing market, a anemic lodging marketplace and important investments successful its Homes.com business. We besides sold CoStar Group, arsenic the company's valuation volition stay precocious until it's capable to monetize its important investments successful Homes.com. CoStar Group is simply a starring supplier of online existent property marketplace places, accusation and analytics successful the commercialized and residential spot markets. We felt the stock’s valuation was precocious fixed its continued important investments successful Homes.com person an uncertain payoff."

CoStar Group, Inc. (NASDAQ:CSGP) is not connected our database of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 58 hedge money portfolios held CoStar Group, Inc. (NASDAQ:CSGP) astatine the extremity of the 4th quarter, up from 57 successful the erstwhile quarter. While we admit the imaginable of CoStar Group, Inc. (NASDAQ:CSGP) arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

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