Shares of CoStar Group, Inc. (CSGP, Financial), the leading provider of information and marketing services to the commercial real estate industry, detracted from third quarter performance. Investors appeared cautious about the magnitude of CoStar’s 2016 marketing investments to support its multifamily initiative. We see strong early traction in the multifamily space and believe that investments in marketing will yield meaningful returns. Over time, we believe the multifamily business can evolve into an incremental $1 billion business with 50% margins. (Neal Rosenberg)
From Baron Funds' Baron Partners Fund shareholder letter for Q3 2015.
