Parnassus Investments, an investment management company, released the “Parnassus Growth Equity Fund” third quarter 2024 investor letter. A copy of the letter can be downloaded here. In the third quarter, the Fund (Investor Shares) returned 3.29% (net of fees) outperforming the Russell 1000 Growth Index’s 3.19% gain. Stock selection in the Health Care sector primarily drove the portfolio’s outperformance. Also, overweight position and stock selection in the Financials sector buoyed the gains. In addition, please check the fund’s top five holdings to know its best picks in 2024.

Parnassus Growth Equity Fund highlighted stocks like CoStar Group, Inc. (NASDAQ:CSGP) in the third quarter 2024 investor letter. CoStar Group, Inc. (NASDAQ:CSGP) is an information, analytics, and online marketplace services provider for commercial and residential property markets. The one-month return of CoStar Group, Inc. (NASDAQ:CSGP) was 0.87%, and its shares lost 11.20% of their value over the last 52 weeks. On December 10, 2024, CoStar Group, Inc. (NASDAQ:CSGP) stock closed at $76.43 per share with a market capitalization of $32.243 billion.

Parnassus Growth Equity Fund stated the following regarding CoStar Group, Inc. (NASDAQ:CSGP) in its Q3 2024 investor letter:

"We initiated a position in data and analytics provider CoStar Group, Inc. (NASDAQ:CSGP) in the Real Estate sector, where we previously did not own any investments. CoStar owns a large proprietary property database and a wide network of marketplaces, earning significant revenue from high-renewal subscriptions. It has been consistently gaining share in the real estate industry, particularly in the commercial segment. We believe its investment in homes.com could further boost its presence in the residential market."

An elegant residential building set against the modern skyline.

CoStar Group, Inc. (NASDAQ:CSGP) is not on our list of 31 Most Popular Stocks Among Hedge Funds. As per our database, 43 hedge fund portfolios held CoStar Group, Inc. (NASDAQ:CSGP) at the end of the third quarter which was 42 in the previous quarter. While we acknowledge the potential of CoStar Group, Inc. (NASDAQ:CSGP) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

In another article, we discussed CoStar Group, Inc. (NASDAQ:CSGP) and shared the list of best real estate and realty stocks to buy according to hedge funds. CoStar Group, Inc. (NASDAQ:CSGP) detracted from the performance of Baron Asset Fund in Q3 2024. In addition, please check out our hedge fund investor letters Q3 2024 page for more investor letters from hedge funds and other leading investors.