Investment management company Maran Capital Management recently released its third-quarter 2023 investor letter. A copy of the same can be downloaded here. Maran Partners Fund returned +3.4%, net of all fees and expenses in the third quarter taking the YTD return to +9.7% net. In addition, you can check the top 5 holdings of the fund to know its best picks in 2023.
Maran Capital Management highlighted stocks like Clarus Corporation (NASDAQ:CLAR) in the third quarter 2023 investor letter. Headquartered in Salt Lake City, Utah, Clarus Corporation (NASDAQ:CLAR) is an outdoor equipment and lifestyle products manufacturer. On November 2, 2023, Clarus Corporation (NASDAQ:CLAR) stock closed at $5.81 per share. One-month return of Clarus Corporation (NASDAQ:CLAR) was -11.16%, and its shares lost 48.49% of their value over the last 52 weeks. Clarus Corporation (NASDAQ:CLAR) has a market capitalization of $238.959 million.
Maran Capital Management made the following comment about Clarus Corporation (NASDAQ:CLAR) in its Q3 2023 investor letter:
“Clarus Corporation (NASDAQ:CLAR) received an offer of $160 million for its bullet and ammunition segment from Clarus’ chairman, Warren Kanders. A situation like this obviously requires a thoughtful approach to managing the conflict of interest, but this transaction would lift the ESG overhang that accompanies businesses of this type and would bring Clarus to a net-cash position, highlighting the extremely cheap valuation of the remaining segments.
Clarus’ market cap is $210 million, and the company should have net debt of around $105 million at year[1]end, before contemplating the aforementioned transaction. Post-transaction, the company would have net cash of approximately $55 million (~25% of the market cap) and an enterprise value of $155 million.
Investors and analysts frequently extrapolate recent results, whether they be positive or negative. Just as our hypothetical CEO in the example above was too optimistic about his results given his inside view, the market can frequently get too negative about a company by utilizing an inside view approach. I believe that may be the case with Clarus today. This myopic approach seems to be leading the market to say that the consumer is weak and Clarus’ recent margins have compressed, and therefore that its margins will be low forever…” (Click here to read the full text)
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Clarus Corporation (NASDAQ:CLAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held Clarus Corporation (NASDAQ:CLAR) at the end of second quarter which was 14 in the previous quarter.
We discussed Clarus Corporation (NASDAQ:CLAR) in another article and shared the list of best gun stocks to buy in 2023. In addition, please check out our hedge fund investor letters Q3 2023 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.
