Tags: Castro-Cuba | Cuba | Fund | Obama | Prisoner Release

Cuba-focused Fund Rockets on Expected US Policy Shift

Wednesday, 17 Dec 2014 10:52 AM

Shares of the Herzfeld Caribbean Basin Fund jumped by nearly 40 percent to a seven-year high on record volume on Wednesday following reports that the Obama administration was preparing to announce sweeping changes to U.S. policy about Cuba.

The fund, a closed-end mutual fund listed on Nasdaq under the ticker "CUBA," holds stocks and assets that fund manager Thomas Herzfeld believes would benefit from an eventual end to the U.S. economic embargo against Cuba.

Shares of the fund shot to as high as $9.60, their highest since November 2007, from the previous day's close of $6.81, a two-month low. They last traded at $9.51.

Volume topped 11.8 million shares, by far a record amount of trading. Volume was more than 70 standard deviations above its previous daily average of around 11,000.

The fund, with just $34 million in net assets at the end of November, has 60 holdings, according to Reuters data, and many of them were outperforming the wider market on Wednesday.

Its largest is Panamanian airline Copa Holdings SA, accounting for around 8.5 percent of fund assets, which was up 3.7 percent.

MasTec Inc., a U.S.-based construction services company, is the No. 2 holding accounting for 6.3 percent of fund assets and was up 7.3 percent.

Other top holdings include:

  • Cola-Cola Femsa, up 2.6 percent
  • Royal Caribbean, up 3.7 percent
  • Seaboard Corp., down 1.4 percent
  • Lennar Corp., up 1.8 percent
  • Norwegian Cruise Line Holdings, up 1.4 percent.

© 2017 Thomson/Reuters. All rights reserved.

 
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Shares of the Herzfeld Caribbean Basin Fund jumped by more than 20 percent on record volume on Wednesday morning following reports that the Obama administration was preparing to announce sweeping changes to U.S. policy about Cuba.
Cuba, Fund, Obama, Prisoner Release
239
2014-52-17
Wednesday, 17 Dec 2014 10:52 AM
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