Palm Valley Capital Management has released its third-quarter 2026 investor letter for the Palm Valley Capital Fund. The fund gained 1.61% during the quarter, outperforming the S&P SmallCap 600 Index, which declined 7.93%, and the Morningstar Small Cap Total Return Index, which fell 5.60%. Treasury bills accounted for 75.5% of the fund’s assets at quarter-end, while its equity holdings returned 4.8%.
The letter examines a market in which small-cap stocks lagged their larger peers even as the S&P 500 approached its highs. The managers draw parallels between sharp stock-price swings in a rising market and conditions during the technology bubble. They also question whether policies aimed at preserving today’s wealth come at the expense of future prosperity, arguing that rising asset prices deepen economic disparities while shifting financial burdens to future generations. Citing federal debt exceeding $40 trillion, the managers frame the debate around how wealth and obligations are distributed across generations, alongside the familiar divide between rich and poor.
The Clorox Company (NYSE:CLX) is a consumer products manufacturer that sells household cleaning, disinfecting, personal care, and food products worldwide. Its portfolio includes brands such as Clorox, Pine-Sol, and Hidden Valley, serving both consumers and professional customers. On October 29, 2026, its shares closed at $88.67, an increase of 2.11% from the previous session, with a market capitalization of approximately $10.72 billion.
Here’s what Palm Valley Capital Management has to say about The Clorox Company (NYSE:CLX):
“The Clorox Company (ticker: CLX) was sold and repurchased during the quarter. When we first acquired the stock, it rose to our valuation shortly after we bought it, so we sold. Clorox then fell to a new low later in the quarter. When Clorox reported results in August, they reflected comparison challenges due to customers accelerating purchases ahead of an ERP implementation a year ago. However, we attribute the stock’s decline more to overall weakness in the consumer space than company-specific news.”
The Clorox Company (NYSE: CLX) announced on October 29, 2026, that Fabian Garcia will become chief executive officer on January 5, 2027. Garcia, currently president of Unilever Personal Care, will succeed Linda Rendle, who previously announced plans to step down for health reasons. Matthew Shattock will become independent board chair, while Rendle will remain an adviser through April 2, 2027, to support the transition.
YOU MUST READ THIS: 10 Best Stocks to Buy for the Next 20 Years
Disclosure: No material interests to disclose. This article was originally published on Global Market Bulletin.
