Core Insights - Laughing Water Capital reported a decline of approximately -1% in Q3 2025, resulting in year-to-date returns of approximately -2.7%, while the SP500TR and R2000 indices returned 12.4% and 8.1% respectively in the same quarter [1] - The investor letter highlighted Clarus Corporation (NASDAQ:CLAR) as a focus, noting its significant underperformance with a one-month return of -2.01% and a 52-week loss of 18.81% [2][3] Company Analysis - Clarus Corporation, known for its Black Diamond climbing gear and Rhino Rack roof racks, is perceived as undervalued in the market, with the Chairman incentivized to realize full value potentially through a sale [3] - As of October 29, 2025, Clarus Corporation's stock closed at $3.41 per share, with a market capitalization of $130.95 million [2] - Despite its potential, Clarus Corporation is not among the top 30 most popular stocks among hedge funds, with a decrease in hedge fund portfolios holding the stock from 13 to 11 [4]