Zillow Group, Inc. (ZG, Financial) is the leading online real estate site in the U.S., offering information on homes for sale and rent, in addition to the Zillow Mortgage Marketplace. The company also owns and operates Street Easy, the leading real estate site for New York City and the Hamptons. Zillow continues to invest in its brand as the leader in the $12 billion real estate advertising market. The company recently acquired Trulia, the number three player in online real estate. Zillow has recently completed the integration of Trulia onto Zillow’s advertising sales platform. The integration of the sales platform and the introduction of new products focused on improving advertiser ROI should benefit the company going forward. Given that the combined companies capture less than 5 percent of the $12 billion that real estate professionals spend on marketing each year, we believe there is ample room for future growth and as such, added to our position in the quarter. (Ashim Mehra)
From Baron Funds' Baron Partners Fund shareholder letter for Q3 2015.
