Should You Hold Oil-Dri (ODC)?

Diamond Hill Capital, an investment management company, released its “Small Cap Strategy” fourth-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fourth quarter posted another period of favorable gains for equity markets, with the Russell 2000 Index returning 2.19%, roughly in line with the Russell 1000 Index’s 2.41% gain. Health care (+18.6%) emerged as the best-performing sector in the Russell 2000 Index. Heightened uncertainty and geopolitical risks contributed to a mixed market environment in 2025 and Q4, yet the Russell 2000 Index still posted a 12.81% gain for the year. Heading into 2026, the firm continues to focus on resilient businesses that can sustain earnings in a volatile landscape. The Strategy returned 4.88% (net of fees) in the quarter compared to the Russell 2000 Index’s 2.19% gain. Please review the Strategy’s top five holdings to gain insights into their key selections for 2025.

In its fourth-quarter 2025 investor letter, Diamond Hill Small Cap Strategy highlighted stocks like Oil-Dri Corporation of America (NYSE:ODC). Oil-Dri Corporation of America (NYSE:ODC) is a US-based manufacturer of sorbent products. On February 4, 2026, Oil-Dri Corporation of America (NYSE:ODC) stock closed at $62.24 per share. Oil-Dri Corporation of America (NYSE:ODC) delivered a 22.54% return in the past month, and its shares are up 44.78% over the past twelve months. Oil-Dri Corporation of America (NYSE:ODC) has a market capitalization of $907.257 million.

Diamond Hill Small Cap Strategy stated the following regarding Oil-Dri Corporation of America (NYSE:ODC) in its fourth quarter 2025 investor letter:

“Oil-Dri Corporation of America (NYSE:ODC), a leading provider of branded and private-label cat litter as well as other sorbent materials, reported solid but more normalized results against a backdrop of more difficult comparisons. No change to our long-term view — this is a business that continues to execute very well, owns tangible assets with a proven expertise in creating value in a specialized niche, and has several structural growth drivers going forward.”

Oil-Dri Corporation of America (NYSE:ODC) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 16 hedge fund portfolios held Oil-Dri Corporation of America (NYSE:ODC) at the end of the third quarter, up from 14 in the previous quarter. While we acknowledge the risk and potential of Oil-Dri Corporation of America (NYSE:ODC) 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 Oil-Dri Corporation of America (NYSE:ODC) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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.