Zillow Group, Inc. (NASDAQ:ZG) is the leading Internet-based company focused on the residential real estate market. Zillow owns various websites, including Trulia, that contain information about homes for sale, and real estate brokerages and agents advertise on these sites to attract potential clients. We believe that an increasing number of home buyers will begin their home searches online, and Zillow will be an important beneficiary of this trend. The company’s shares gained meaningfully after it reported sharply improved results and offered encouraging guidance for the remainder of the year. In addition, the company reached a favorable legal settlement with its largest competitor, which removed an overhang on its shares.
Baron Asset Fund second quarter shareholder letter.
