Why Clarus Corp (CLAR) Stock is a Compelling Investment Case

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Maran Capital recently released its Q3 2020 Investor Letter, a copy of which you can download here. The fund returned approximately 13.6% net in the third quarter and approximately -1.3% for year-to-date. Over the past three years, Maran Partners Fund is up 38.5% net while the Russell 2000 total return index is up just 5.4% during the same period. You should check out Maran Capital’s top 5 stock picks for investors to buy right now, which could be the biggest winners of this year.

In the said letter, Maran Capital highlighted a few stocks and Clarus Corp (NASDAQ:CLAR) is one of them. Clarus Corp (NASDAQ:CLAR) is focused on the outdoor and consumer industries. Year-to-date, Clarus Corp (NASDAQ:CLAR) stock gained 22.2% and on November 4th it had a closing price of $16.24. Here is what Maran Capital said:

“Clarus continues to execute on its “buy and build” approach.

Clarus’ Sierra Bullets division recently purchased Barnes Bullets from the bankruptcy estate of Remington Outdoor for $30.5mm. Barnes is likely on pace to generate over $25mm of revenue and $6mm of EBITDA this year.5 On a pro forma run-rate basis (after synergies), it appears that Clarus may have purchased Barnes for a low single digit EBITDA multiple (3-4x).

I believe this was a fantastic deal that will be significantly value accretive for Clarus.”

Photo: Wikipedia Commons

In Q1 2020, the number of bullish hedge fund positions on Clarus Corp (NASDAQ:CLAR) stock remained unchanged from the previous quarter (see the chart here). Our calculations showed that Clarus Corp (NASDAQ:CLAR) isn’t ranked among the 30 most popular stocks among hedge funds.

The top 10 stocks among hedge funds returned 185% since the end of 2014 and outperformed the S&P 500 Index ETFs by more than 109 percentage points. We know it sounds unbelievable. You have been dismissing our articles about top hedge fund stocks mostly because you were fed biased information by other media outlets about hedge funds’ poor performance. You could have doubled the size of your nest egg by investing in the top hedge fund stocks instead of dumb S&P 500 ETFs. Below you can watch our video about the top 5 hedge fund stocks right now. All of these stocks had positive returns in 2020.

Video: Top 5 Stocks Among Hedge Funds

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website:

Disclosure: None. This article is originally published at Insider Monkey.