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s the trade war between the US and its global partners intensifies, investors are seeking guidance from those closest to the action: insiders. In our previous article, we highlighted 20 stocks that saw insider buying in April following President Trump's tariff rollout. Today, we'll delve into NexPoint Diversified Real Estate Trust (NYSE:NXDT), a company where insiders have been actively accumulating shares amidst market uncertainty.
The recent escalation of tariffs has sent shockwaves through the global economy, with 57 countries facing increased trade barriers. As the US imposes higher tariffs on imports, ranging from 11% to 50%, investors are left wondering which companies will emerge unscathed. Amidst this backdrop, insider trading can provide valuable insights into a company's future prospects.
Insider buying often signals confidence in a company's ability to navigate challenging market conditions. Conversely, insider sales don't necessarily indicate poor performance, as they may reflect personal investment decisions or diversification strategies. To gain a deeper understanding of NexPoint Diversified Real Estate Trust, let's examine its business model and recent insider activity.
NexPoint Diversified is a diversified real estate investment trust (REIT) focused on generating current income and capital appreciation through investments in commercial properties, mortgage debt, mezzanine debt, and equity. Its portfolio spans various sectors, including industrial, hospitality, retail, and more. By diversifying its holdings across both real estate and non-real estate securities, NexPoint Diversified aims to mitigate risk and maximize returns.
As we continue to monitor insider trading activity, it's essential to consider the company's financial health and market conditions. Our research has shown that imitating top stock picks from hedge funds and focusing on insider trading can lead to outperformance in the market. With our quarterly newsletter strategy returning 373.4% since May 2014, beating its benchmark by 218 percentage points, we're confident in our approach.
