Real estate data and marketing platform CoStar Group, Inc. (CSGP, Financial) detracted for the quarter. The company experienced a slowdown in its multi-family marketing platform as a result of record-high apartment occupancy. We believe this condition is temporary and that growth will improve through higher prices and better customer segmentation. The company is pushing into the residential market, which meaningfully expands its total addressable market. While this initiative requires short-term investment, it should ultimately yield high returns and bolster growth and margins.
From Ron Baron (Trades, Portfolio)'s Baron Growth Fund fourth-quarter 2021 letter.
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