CLO equity funds were one of the most hated investments in 2025 and into 2026 — even more than private credit. While almost every asset class enjoyed tremendous returns in 2025, CLO equity funds (CCIF, ECC, PDCC, OCCI, OXLC, SPMC and XFLT) were down between 15% (XFLT) and 57% (ECC), while the S&P 500, NASDAQ, and Russell 2000 were up 18%, 20%, and 13%, respectively. And 2026 isn't getting any better — stocks are down an additional 10% (ECC) to 29% (XFLT). I am going to focus
