When Fidel Castro meets his maker and when -- and if -- the communist regime falls, one fund will be ready: Herzfeld Caribbean Basin. Herzfeld invests in companies poised to benefit once the U.S. lifts its trade embargo with Cuba.
Miami money manager Thomas Herzfeld launched the closed-end fund in 1994 as a backdoor way to invest in Cuba. Closed-end funds trade like stocks and can be worth more or less than the assets they hold. Shares of Caribbean Basin (symbol CUBA) popped 25%, to $9, during the first two days of August after the news broke that Castro was seriously ill. In mid August, they fetched $8, or 0.5% less than net asset value (NAV).
Herzfeld seeks companies that not only will cash in if the embargo is lifted, but also perform well on their own. Among its holdings are Florida East Coast Industries, which operates a railroad that runs down Florida's Atlantic coastline, and Royal Caribbean Cruises.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Over the past ten years, the fund returned an annualized 7.1% on NAV (the best way to measure the manager). That trails both Standard Poor's 500-stock index and the SP Global 1200 by two percentage points a year. But if you think Castro's and communism's days are numbered, Caribbean Basin is as Cuba-focused as you can get with a mutual fund.
-
Fed's Rate Cuts Could Have Impacts You Might Not AnticipateUnderstanding how lower interest rates could impact your wallet can help you determine the right financial moves to make.
-
Past Performance Is Not Indicative of Your Adviser's ExpertiseMany people find a financial adviser by searching online or asking for referrals from friends or family. This can actually end up costing you big-time.
-
I'm want to give my 3 grandkids $5K each for Christmas.You're comfortably retired and want to give your grandkids a big Christmas check, but their parents are worried they might spend it all. We ask the pros for help.
-
Best Banks for High-Net-Worth Clientswealth management These banks welcome customers who keep high balances in deposit and investment accounts, showering them with fee breaks and access to financial-planning services.
-
Stock Market Holidays in 2025: NYSE, NASDAQ and Wall Street HolidaysMarkets When are the stock market holidays? Here, we look at which days the NYSE, Nasdaq and bond markets are off in 2025.
-
Stock Market Trading Hours: What Time Is the Stock Market Open Today?Markets When does the market open? While the stock market has regular hours, trading doesn't necessarily stop when the major exchanges close.
-
Bogleheads Stay the CourseBears and market volatility don’t scare these die-hard Vanguard investors.
-
The Current I-Bond Rate Is Mildly Attractive. Here's Why.Investing for Income The current I-bond rate is active until April 2026 and presents an attractive value, if not as attractive as in the recent past.
-
What Are I-Bonds? Inflation Made Them Popular. What Now?savings bonds Inflation has made Series I savings bonds, known as I-bonds, enormously popular with risk-averse investors. How do they work?
-
This New Sustainable ETF’s Pitch? Give Back Profits.investing Newday’s ETF partners with UNICEF and other groups.
-
As the Market Falls, New Retirees Need a Planretirement If you’re in the early stages of your retirement, you’re likely in a rough spot watching your portfolio shrink. We have some strategies to make the best of things.
