We recently added to our existing position in Zillow Group, Inc. (NASDAQ:ZG) on a dip in the stock price following a disappointing earnings report, due in part to legal fees tied to a lawsuit with a competitor and in part to higher charges following the merger with one-time rival Trulia. We believed these headwinds were short-term and took the opportunity to increase our stake in the company. Zillow is the leading online real estate site in the U.S., offering information on homes for sale and rent through its various residential real estate-related websites. Given that its combined companies captures less than 5% of the $112 billion that real estate professionals spend on marketing each year, we think there is ample room for growth.
From Baron Funds' fall 2016 newsletter.
