T
hird Point Management, a New York-based investment advisor, released its first-quarter 2025 investor letter. The Third Point Offshore Fund returned nearly -3.7% in the first quarter of 2025. Initially, investors were optimistic about the new administration's deregulation and business policies, but concerns over trade policy shifted market sentiment to negative by the end of the quarter.

    In its Q1 2025 investor letter, Third Point Management highlighted CoStar Group, Inc. (NASDAQ:CSGP) as one of its top picks. As a leading provider of information, analytics, and online marketplace services for commercial and residential property markets, CoStar Group has a strong portfolio that includes data and software products, as well as digital marketing platforms.

    Third Point Management praised CoStar Group's collection of franchises, which provide critical data, software, and services to the real estate industry. The company holds dominant market share, has significant untapped pricing power, and enjoys high-margin business models with room for further expansion. This has allowed CoStar's core business to compound EBITDA at a 20% CAGR over the past ten years, a level that Third Point Management expects to sustain going forward.