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JB Global Capital, an investment firm, released its fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. During Q4 2025, JB Global Capital reported an 8.9% decline, largely driven by a sharp drop in Alibaba, its largest holding, while global markets posted modest gains. Despite the quarter’s setback, the fund delivered a strong full-year return of 67.5% and stands at 108.9% since inception, outperforming major benchmarks. The letter explains that 2025 market gains were heavily concentrated in a small group of mega-cap tech companies, which the fund largely avoids due to valuation discipline. However, the managers remain focused on fundamentals and believe this approach will benefit long-term performance as market leadership shifts. Additionally, please check the fund’s top five holdings to know its best picks in 2025.
The Clorox Company (NYSE:CLX) is a U.S. consumer goods company with a $qa6.8 billion portfolio of leading brands in household essentials. During Q4 2025, the fund initiated a position at an average cost of $104 per share, a decade-low valuation for a business generating 35%+ returns on invested capital. The Clorox Company (NYSE:CLX) faced temporary disruptions from a $580 million ERP implementation, causing organic sales to decline 17% in Q1 fiscal 2026, but fill rates had recovered to 92% by late October, with full stabilization expected by March 2026. The ERP investment is projected to drive $75–100 million in annual cost savings, including a 30% reduction in forecasting errors and 15–20% improvement in working capital efficiency. The Clorox Company (NYSE:CLX) trades at 16x earnings with a ~5% dividend yield, and a discounted floor valuation of $95–103 per share, while the fund estimates fair value at $134–145 per share, implying 30–40% upside. The one-month return of The Clorox Company (NYSE:CLX) was approximately -11.25%, and its shares have declined about 31.10% over the last 52 weeks. On January 14, 2026, The Clorox Company (NYSE:CLX) stock closed at approximately $111.41 per share, with a market capitalization of about $13.59 billion.
JB Global Capital stated the following regarding The Clorox Company (NYSE:CLX) in its fourth quarter 2025 investor letter:
“During Q4 2025, we initiated a position in The Clorox Company (NYSE:CLX) at an average cost basis of approximately $104 per share—a decade-low valuation for a business generating 35%+ returns on invested capital.
The Clorox Company (NYSE:CLX) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 37 hedge fund portfolios held The Clorox Company (NYSE:CLX) at the end of the third quarter, which was 46 in the previous quarter. While we acknowledge the risk and potential of The Clorox Company (NYSE:CLX) 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’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 The Clorox Company (NYSE:CLX) and shared the list of best dividend stocks for a dividend achievers list. In addition, please check out our hedge fund investor letters Q4 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.
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