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Baron Opportunity Fund exits CoStar Group position after Homes.com buildout
The fund said it sold CoStar during Q2 2026, pointing to years of performance pressure tied to Homes.com investment.
Baron Capital’s Baron Opportunity Fund said it sold its position in CoStar Group, an information, analytics and online marketplace services provider for commercial and residential property markets, during the second quarter of 2026, according to the fund’s Q2 2026 investor letter.
During Q2, the fund increased 27.07% for the period on an institutional share basis, outperforming the Russell 3000 Growth Index and the S&P 500 Index. For the first half of 2026, the fund rose 15.79%, compared with 5.88% for its benchmark and 10.21% for the S&P 500.
The investor letter said Baron elected to exit CoStar after a “successful multi-decade investment,” citing performance challenges over recent years as the company invested aggressively to build out its Homes.com residential real estate marketing platform. CoStar closed on August 11, 2026 at $31.12 per share, valuing the company at $12.61 billion.
Baron also highlighted that the fund’s broader rally was driven primarily by AI-related growth and stronger performance from a select group of stocks, including Information Technology. The letter said growth stocks rebounded, surpassing value stocks, while still lagging year to date, as the fund focuses on disruptive secular trends such as AI.
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