Investment firm D.E. Shaw sent a public letter to CoStar Group's (NASDAQ: CSGP) board of directors criticizing the company's decision to change its reporting structure, which D.E. Shaw claims reduces transparency into the financial performance of CoStar's underlying businesses.

The letter, dated March 10, follows D.E. Shaw's previous correspondence to CoStar's board on February 4. D.E. Shaw manages more than $85 billion in investment capital and holds shares in CoStar Group.

CoStar recently announced changes to its segment reporting that combine its Homes.com business with other operations into a new "Residential" segment that includes the Apartments.com business and three other units. The company also stopped disclosing net new bookings data for Homes.com, which D.E. Shaw describes as a key operating metric.

Following CoStar's earnings call where management declined to provide segment-level net new bookings data when requested by analysts, the company's stock declined 9% the following day, representing approximately $2 billion in market value reduction, according to the letter.

"While the Board has claimed it is 'focused on holding management accountable', there can be no accountability without transparency," D.E. Shaw stated in the letter signed by Managing Directors Edwin Jager and Michael O'Mary.

D.E. Shaw expressed concerns about capital allocation to Homes.com and stated that CoStar's stock is trading near seven-year lows. The investment firm has previously communicated with CoStar's board regarding its views on Homes.com's performance over the past year.

The letter indicates this represents D.E. Shaw's ongoing engagement with CoStar regarding what it views as underperformance of the Homes.com business and the company's reporting practices.