NexPoint Diversified Real Estate Trust is a closed ended balanced mutual fund launched by Highland Capital Management LP It is managed by Nexpoint Advisors LP The fund invests in the fixed income markets of the United States It invests in companies across broadly diversified sectors to construct its portfolio The fund typically invests in senior loans secured and unsecured floating and fixed rate loans bonds debt obligations of stressed distressed and bankrupt issuers mortgagebacked securities assetbacked securities and collateralized debt obligations with a primary focus on below investment grade debt and equity securities It employs a quantitative analysis to create its portfolio The fund benchmarks the performance of its portfolio against the Dow Jones Credit Suisse Hedge Fund and the HFRX Global Hedge Fund It was formerly known as NexPoint Strategic Opportunities Fund NexPoint Diversified Real Estate Trust was formed on June 1 2006 and is domiciled in the United States