Here’s an interesting side effect to Fidel Castro’s no show today at the May Day rally. It would appear that people buying the fund see Castro’s no show as a positive development for Cuba related investments. Just my opinion.
This fund invests in stocks positioned to appreciate in a post-Embargo Cuba like the Florida East Coast railroad and Carnival Cruise Lines. The closed end mutual fund is up about 10% in late day trading.
I wanted to post this article so others can learn about the fund and read the Annual Report that may offer some insight into the future of Cuba related investments.
Herzfeld/Cuba, a division of Thomas J. Herzfeld Advisors, Inc. is the investment advisor to The Herzfeld Caribbean Basin Fund, Inc. (NASDAQ, CUBA).
The Herzfeld Caribbean Basin Fund’s investment objective is long-term capital appreciation. To achieve its objective, the Fund invests in issuers that are likely, in the Advisor’s view, to benefit from economic, political, structural and technological developments in the countries in the Caribbean Basin, which consist of Cuba, Jamaica, Trinidad and Tobago, the Bahamas, the Dominican Republic, Barbados, Aruba, Haiti, the Netherlands Antilles, the Commonwealth of Puerto Rico, Mexico, Honduras, Guatemala, Belize, Costa Rica, Panama, Colombia and Venezuela. The fund invests at least 80% of its total assets in a broad range of securities of issuers including U.S.-based companies that engage in substantial trade with, and derive substantial revenue from, operations in the Caribbean Basin Countries.
The annual report is an interesting read to understand Mr. Herzfeld’s view on Cuba related investments.
See the Yahoo stock chart information.
FULL DISCLOSURE: I own shares of the CUBA fund. This is NOT a paid advertisement and I was not influenced in any way by anyone associated with the CUBA fund to post this article.