D.E. Shaw Calls for Management Changes at CoStar in Letter

D.E. Shaw & Co. criticized the board of CoStar Group Inc. in a letter to the company, putting further pressure on the real estate analytics group as it faces a separate campaign from activist investor Dan Loeb.

“Only substantial change to capital allocation, executive leadership and board composition will address the root cause of CoStar’s persistent underperformance and restore investor confidence,” the investment firm said Wednesday.

The firm said CoStar’s problems stem from its heavy investment in Homes.com, which the hedge fund described as a “high-risk, money-losing” business. D.E. Shaw said it has “repeatedly expressed” its belief to the ...