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.
Founded in 1913, Clorox has built a $6.8 billion portfolio of brands dominating essential household categories: 61% of North American bleach, 50% of charcoal, 35% of toilet care, and one-third of trash bags. Nine out of ten U.S. households own at least one Clorox product—a remarkable statistic representing decades of brand equity built through consistent quality and strategic investments in inherently resistant categories.
The capital efficiency story is exceptional. For every dollar Clorox invests, it generates $3.50 in profit above its cost of capital. This reflects genuine competitive advantages: co-owned clay mines for cat litter, strategic charcoal sourcing, strong retail relationships, and brands consumers trust enough to pay premium prices for during private-label erosion…” (Click here to read the full text)
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 are looking for an AI stock that is more promising than The Clorox Company (NYSE:CLX) and that has 10,000% upside potential, check out our report about this cheapest 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.
