Investment management company Maran Capital Management recently released its fourth-quarter 2022 investor letter. A copy of the same can be downloaded here. Maran Partners Fund returned 1.6%, net of all fees and expenses in the fourth quarter, taking the yearly performance to -24.2%. The fund compounded at the rate of 11% every year over the last five years. In addition, you can check the top 5 holdings of the fund to know its best picks in 2022.
Maran Capital Management highlighted stocks like Clarus Corporation (NASDAQ:CLAR) in the Q4 2022 investor letter. Headquartered in Salt Lake City, Utah, Clarus Corporation (NASDAQ:CLAR) is an outdoor equipment and lifestyle products manufacturer. On February 14, 2023, Clarus Corporation (NASDAQ:CLAR) stock closed at $9.97 per share. One-month return of Clarus Corporation (NASDAQ:CLAR) was 6.63%, and its shares lost 55.90% of their value over the last 52 weeks. Clarus Corporation (NASDAQ:CLAR) has a market capitalization of $369.254 million.
Maran Capital Management made the following comment about Clarus Corporation (NASDAQ:CLAR) in its Q4 2022 investor letter:
“While Clarus Corporation (NASDAQ:CLAR) wound up being a meaningful detractor to performance last year, it could have been much worse. We have held Clarus in various position sizes for seven years, and the company has performed well for us. With this history, it would have been easy to fall in love with the stock. But I try to remain rational and level-headed with respect to all of our positions, even those that we have grown to know very well.
As changing tides in August lifted the stock for seemingly non-fundamental reasons, I took advantage of the upward volatility to sell the majority of our position. Of course, I should have sold all of our position in mid-August rather than just most of it (another lesson from 2022), but hindsight is 20/20 and I never would have expected the stock to fall as far is it ultimately did.
Following the options-fueled squeeze higher and then rapid sell-off over the summer, shares fell further in November as Clarus reported that it would likely not grow EBITDA y/y in 2022 as previously expected. Clarus’ direct-to-consumer business remains strong, but inventory destocking by large-format outdoor retailers led to a slowdown in orders over recent months. While the near-term outlook is somewhat cloudy, investors seem to be pricing Clarus as if it will never grow again. This is myopic. Outdoor activities, climbing, and overlanding are all secular growth categories, even if Covid pulled forward demand in some of them. I think each of Clarus’ businesses will be larger several years from now…” (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, 20 hedge fund portfolios held Clarus Corporation (NASDAQ:CLAR) at the end of the third quarter which was 18 in the previous quarter.
We discussed Clarus Corporation (NASDAQ:CLAR) in another article and shared Greenhaven Road Capital’s views on the company. In addition, please check out our hedge fund investor letters Q4 2022 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.
