Here’s What Maran Capital Thinks about Clarus (CLAR)
Investment management company Maran Capital Management recently released its first-quarter 2024 investor letter. A copy of the letter can be downloaded here. Maran Partners Fund returned +3.4% in the first quarter, net of all fees and expenses. The company acknowledges the role of volatility in a sensible, long-term investment strategy and strives to position itself for success in various economic conditions. In addition, you can check the top 5 holdings of the fund to know its best picks in 2024.
Maran Capital Management featured stocks like Clarus Corporation (NASDAQ:CLAR) in the first quarter 2024 investor letter. Headquartered in Salt Lake City, Utah, Clarus Corporation (NASDAQ:CLAR) is an outdoor equipment and lifestyle products manufacturer. On May 7, 2024, Clarus Corporation (NASDAQ:CLAR) stock closed at $6.77 per share. One-month return of Clarus Corporation (NASDAQ:CLAR) was 6.95%, and its shares lost 21.00% of their value over the last 52 weeks. Clarus Corporation (NASDAQ:CLAR) has a market capitalization of $259.279 million.
Maran Capital Management stated the following regarding Clarus Corporation (NASDAQ:CLAR) in its first quarter 2024 investor letter:
"At the end of February, Clarus Corporation (NASDAQ:CLAR) closed on the sale of its Precision Sport segment for $175 million. This brought the company to a net cash position of over $1 per share. With its stock price hovering around $6, Clarus’ enterprise value is approximately $185 million. At its recent analyst day, the company laid out a path to generating ~$50 million of EBITDA in 2026, more than 100% growth from 2024’s expected level.
Obviously, investors don’t believe this guidance is likely to be attained.
If Clarus hits the 2026 forecast, the stock could perhaps triple. If it doesn’t, I believe we still have a large margin of safety at the current price. After all, Clarus has a fortress balance sheet and a history of realizing value for its brands when warranted (including the sales of POC, Gregory, and recently, Sierra and Barnes). This stock is out of favor to an extreme degree. I believe the set-up is highly asymmetric. Upside is perhaps a double or triple over a few years, while I believe the risk of permanent capital loss is limited."
A hiker in a forest with a backpack of outdoor equipment highlighting the company's lifestyle products.
Clarus Corporation (NASDAQ:CLAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 14 hedge fund portfolios held Clarus Corporation (NASDAQ:CLAR) at the end of the fourth quarter which was 14 in the previous quarter.
We discussed Clarus Corporation (NASDAQ:CLAR) in another article, where we shared Maran Capital Management's views on the company in the previous quarter. In Q4 2023 letter, Maran Capital Management shared a positive outlook on Clarus Corporation (NASDAQ:CLAR), however in the current letter it is updated that the market will take time to appreciate Clarus Corporation's (NASDAQ:CLAR) growth catalysts. In addition, please check out our hedge fund investor letters Q1 2024 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
