Clarus: Well-Financed, NOL-Rich Outdoor Equipment Rollup with Insider Alignment

Dan Roller of Maran Capital Management presented his in-depth investment thesis on Clarus Corp. (Nasdaq: CLAR) at Best Ideas 2018.

Clarus is an NOL-rich holding company run by an owner-operator with an enviable track record of creating value through both M&A and organic growth. Its core asset is Black Diamond Equipment, an outdoor equipment business with a heritage that dates to 1957. Black Diamond is number one or two in most of its product categories and is growing rapidly, with numerous organic opportunities ahead.

Its president has built and sold several multi-hundred million dollar consumer brands. Befitting its acquisitive nature, Clarus recently purchased Sierra Bullets, a seventy year-old, family-run, premium bullet manufacturer, for around seven times cash flow, which will be significantly accretive in 2018 and beyond. Clarus continues to look for additional M&A opportunities to grow value and utilize its large NOL.

Dan believes Clarus can be a “three-year double,” with further upside over a longer-term time horizon. The clean balance sheet, significant insider alignment, top- and bottom-line growth, and undemanding valuation, create a solid margin of safety.

About the instructor:

Dan Roller is the founder of Maran Capital Management, a boutique investment manager based in Denver, CO. Dan has a firm commitment to disciplined value investing with a focus on inefficient areas of the market. He takes a long-term approach, concentrates in his best ideas, and is committed to keeping the fund small and the firm lean. Dan has been connecting dots and unearthing value for over fifteen years. Prior to forming Maran, he honed his investment philosophy and process for over a decade working in analyst and portfolio manager roles on the buyside in New York. Dan received a BSE in electrical engineering, with a second major in computer science, from Duke University in 2003. In addition to being a passionate value investor, Dan is part husband, part parent, part reader, and part mountain athlete.

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