Prominent hedge fund Third Point, led by billionaire Daniel Loeb, has completely withdrawn from its investment in CoStar Group, abandoning any plans to wage a proxy battle against the real estate information company, according to sources and an investor letter obtained Friday.
The New York-based investment firm reversed its strategy regarding CoStar after determining that pressuring the company to concentrate more heavily on its primary operations would likely not rescue the business that operates Apartments.com and Homes.com.
In a communication to investors reviewed by Reuters, Loeb stated: “We no longer believe that our original thesis holds true today and have disposed of our position in its entirety.”
Third Point had never publicly revealed how large its ownership stake was in the company.
CoStar Group representatives were not immediately available to provide comment on the hedge fund’s decision to exit.
