Third Point Exits CoStar Position and Drops Proxy Fight
Third Point has sold its stake in CoStar Group and abandoned a potential proxy fight. The hedge fund told investors its original thesis no longer holds true.
Billionaire investor Daniel Loeb’s hedge fund, Third Point, has abandoned plans for a proxy contest at real estate data provider COSTAR GROUP INC and has liquidated its entire investment in the firm. The decision marks a significant shift for the activist investor, which had been evaluating a challenge to the board of the company behind major platforms like Apartments.com and Homes.com.
According to sources familiar with the matter and a letter reviewed by Reuters, the hedge fund changed its course after concluding that its initial strategy to pressure the company into focusing more narrowly on its core business might not yield the expected results. Loeb explained the rationale for the exit in a communication to the fund's investors.
We no longer believe that our original thesis holds true today and have disposed of our position in its entirety.
While the specific size of the stake held by Third Point was never publicly disclosed, the total divestment indicates a complete withdrawal from the real estate analytics firm. CoStar Group has not yet provided an official comment regarding the hedge fund's exit or the cancellation of the potential proxy fight.
