JB Global Capital released its fourth-quarter 2025 investor letter. The investment firm reported an 8.9% decline for the quarter, largely due to a sharp drop in Alibaba, its largest holding. Global markets posted modest gains during the same period.
Despite the quarterly setback, the fund delivered a strong full-year return of 67.5%. Since inception, it stands at 108.9%, 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.
The managers remain focused on fundamentals. They believe this approach will benefit long-term performance as market leadership shifts.
During Q4 2025, the fund initiated a position in The Clorox Company at an average cost of $104 per share. This represents a decade-low valuation for a business generating over 35% returns on invested capital.
The Clorox Company faced temporary disruptions from a $580 million ERP implementation. This caused organic sales to decline 17% in Q1 fiscal 2026. Fill rates had recovered to 92% by late October, with full stabilization expected by March 2026.
The ERP investment is projected to drive $75 to $100 million in annual cost savings. This includes a 30% reduction in forecasting errors and a 15% to 20% improvement in working capital efficiency.
The Clorox Company trades at 16 times earnings with an approximately 5% dividend yield. A discounted floor valuation is $95 to $103 per share. The fund estimates fair value at $134 to $145 per share, implying 30% to 40% upside.
The one-month return of The Clorox Company was approximately -11.25%. Its shares have declined about 31.10% over the last 52 weeks. On January 14, 2026, The Clorox Company 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 in its fourth quarter 2025 investor letter: "During Q4 2025, we initiated a position in The Clorox Company 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 is not on the list of 30 Most Popular Stocks Among Hedge Funds. As per the database, 37 hedge fund portfolios held The Clorox Company at the end of the third quarter, which was 46 in the previous quarter.