Laughing Water Capital’s Views on Clarus Corp (CLAR)

Laughing Water Capital, an investment management company, released its third-quarter 2025 investor letter. A copy of the letter can be downloaded here. In the third quarter of 2025, Laughing Water Capital declined approximately -1% net of all expenses, bringing year-to-date returns to approximately -2.7%. The SP500TR and R2000 returned 12.4% and 8.1% respectively, in the quarter, and 14.8% and 10.4%, respectively, for YTD. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its third-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 -2.01%, and its shares lost 18.81% of their value over the last 52 weeks. On October 29, 2025, Clarus Corporation (NASDAQ:CLAR) stock closed at $3.41 per share, with a market capitalization of $130.95 million.

Laughing Water Capital stated the following regarding Clarus Corporation (NASDAQ:CLAR) in its third quarter 2025 investor letter:

“Clarus Corporation (NASDAQ:CLAR) – Clarus, owner of Black Diamond climbing gear and Rhino Rack roof racks, was introduced in our H1’25 letter. The thesis is simple. These are strong brands that are valued by the market well below where private transactions for similar assets take place, and the Chairman and largest shareholder of Clarus is properly incentivized to realize full value, most likely through a sale of the business.

In Q3 multiple insiders bought stock on the open market, and when Clarus reported their Q2 earnings in July, they stated, “we have initiated an internal review to ensure we are evaluating all possible opportunities to create value for shareholders” and further indicated they are “committed to seeking to maximize long-term value.” Typically this sort of language is just a hair shy of hanging a “for sale” sign on the business…” (Click here to read the full text)

Is Clarus Corporation (CLAR)  The Most Undervalued Stock With Smart Money Ratings?

Clarus Corporation (NASDAQ:CLAR) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 11 hedge fund portfolios held Clarus Corporation (NASDAQ:CLAR) at the end of the second quarter, compared to 13 in the previous quarter. While we acknowledge the risk and potential of Clarus Corporation (NASDAQ:CLAR) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Clarus Corporation (NASDAQ:CLAR) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Clarus Corporation (NASDAQ:CLAR) and shared Laughing Water Capital’s views on the company in the previous quarter. In addition, please check out our hedge fund investor letters Q3 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.