Daniel Loeb’s hedge fund, Third Point, sold its entire stake in CoStar Group, according to Reuters. The firm will no longer pursue a proxy fight against the real estate data provider. This move reverses previous expectations that the activist investor would pressure the company.
Loeb informed investors that Third Point’s original thesis for the investment no longer holds true. He signaled a loss of confidence in influencing the strategy of the real estate firm. Third Point never publicly disclosed the exact size of its holding. The exit follows CoStar’s significant capital allocation into its residential marketplace, Homes.com.