4 days ago
Here's Laughing Water Capital's Comment on Its New Investment in Clarus Corp. (CLAR)
Laughing Water Capital, an investment management company, released its second-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the second quarter of 2025, Class A interests in Laughing Water Capital returned approximately 13.1% net of all expenses. The SP500TR and R2000 returned 10.9% and 8.5%, respectively. In addition, you can check the fund's top 5 holdings to determine its best picks for 2025.
In its second quarter 2025 investor letter, Laughing Water Capital highlighted stocks such as Clarus Corporation (NASDAQ:CLAR). Clarus Corporation (NASDAQ:CLAR) develops and manufactures outdoor equipment and lifestyle products. The one-month return of Clarus Corporation (NASDAQ:CLAR) was 12.71%, and its shares lost 34.05% of their value over the last 52 weeks. On July 23, 2025, Clarus Corporation (NASDAQ:CLAR) stock closed at $3.99 per share, with a market capitalization of $153.223 million.
Laughing Water Capital stated the following regarding Clarus Corporation (NASDAQ:CLAR) in its second quarter 2025 investor letter:
"Clarus Corporation (NASDAQ:CLAR) – Clarus is a consumer products business focused on outdoor adventure gear. Their Outdoor segment is best known for Black Diamond climbing gear, and their Adventure segment is best known for Rhino-Rack roof racks. Clarus is subscale and undergoing a reset after expanding their SKU count a bit too much. The lack of scale and previous lack of focus leads to GAAP financials that are not pretty; the company struggles with profitability.
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, 13 hedge fund portfolios held Clarus Corporation (NASDAQ:CLAR) at the end of the first quarter, which was 13 in the previous quarter. Clarus Corporation's (NASDAQ:CLAR) first quarter sales declined 13% year-over-year to $60.4 million. While we acknowledge the potential of Clarus Corporation (NASDAQ:CLAR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
In another article, we covered Clarus Corporation (NASDAQ:CLAR) and shared the list of most undervalued stocks with smart money ratings. In addition, please check out our hedge fund investor letters Q2 2025 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.
