Herzfeld Caribbean Basin Stock Price, News & Analysis

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced its latest distribution payment under its Managed Distribution Policy. The Fund distributed $0.2325 per share on June 30, 2025, with 20% paid in cash and approximately 80% in stock.

The distribution included $0.2122 (91.25%) from long-term capital gains and $0.0203 (8.75%) as return of capital. Stockholders who elected to receive only stock or made no election (50.62% of holders) received approximately 0.0944 shares per share owned. Cash-electing stockholders received $0.09418 in cash and 0.0562 shares per share owned.

The Fund's Policy targets an annual distribution rate of 15% of NAV. The current annualized distribution rate is 17.55% of NAV as of May 30, 2025. The Fund's average annual total return over the past 5 years was 2.52%. Following the distribution, total outstanding shares increased to approximately 16,908,652.

[ "Distribution maintained at $0.2325 per share", "91.25% of distribution comes from realized long-term capital gains", "High annualized distribution rate of 17.55% of NAV", "Flexible distribution policy allowing for optimal timing of capital gains distributions" ]

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) announced a major strategic shift following stockholder approval at a Special Meeting on June 17, 2025. The fund will convert from its Caribbean Basin focus to a CLO Equity Strategy effective July 1, 2025, with approximately 96% of votes supporting the change. The new strategy will prioritize total return with high current income as a secondary objective, focusing on investing in equity and junior debt tranches of CLOs - portfolios of below-investment-grade U.S. senior secured loans across various industries. Stockholders approved three key proposals: a revised advisory agreement allowing for managed assets-based and incentive fees, a change in investment objective to maximize risk-adjusted returns, and amendments to fundamental policies regarding borrowing, securities, and investment activities.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a distribution of $0.2325 per share, payable on June 30, 2025. The distribution will be paid through a combination of cash (20%) and common stock (80%). Stockholders can elect their preferred form of payment, with elections due by June 16, 2025. The stock portion will be valued based on the volume weighted average price during June 12-16, 2025.

Notably, the Fund is planning a significant strategic shift, with a special stockholder meeting scheduled for June 17, 2025, to vote on converting from its current investment strategy to a CLO Equity Strategy. This change would redirect the Fund's focus to investing in collateralized loan obligations, with a new primary objective of total return and secondary objective of high current income.

The distribution includes 91.25% from long-term capital gains and 8.75% return of capital. The Fund maintains a 15% annual distribution rate policy based on NAV, with the Board recently modifying the policy to allow for flexible distribution timing.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a special stockholders' meeting on June 17, 2025, to vote on a significant strategic transformation. The Fund plans to convert from its current investment strategy to a CLO Equity Strategy, focusing on collateralized loan obligations. Three key proposals will be considered: 1) Approval of an amended investment advisory agreement allowing fee structure changes, 2) Revision of the Fund's investment objective from "long term capital appreciation" to "maximizing risk adjusted total returns" with high current income as secondary goal, and 3) Amendment of fundamental policies related to borrowing, securities, and investment activities. The meeting will be held at the Fund's Miami Beach offices, with May 5, 2025, set as the record date for voting eligibility.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a significant strategic shift, with its Board of Directors approving a change from Caribbean Basin investments to a CLO Equity Strategy. The Fund will modify its primary objective to focus on total returns and high current income through investments in equity and junior debt tranches of collateralized loan obligations (CLOs).

The change comes after 30 years of Caribbean-focused investment, with management citing opportunities in Cuba relations. The Fund will be renamed to Herzfeld Credit Income Fund and implement a new fee structure: 1.25% management fee and 10% incentive fee with a 9% hurdle rate, replacing the previous 1.45% flat management fee.

The changes require shareholder approval at an upcoming special meeting. While pivoting away from Caribbean investments, the Fund maintains rights to the CUBA ticker symbol for potential future opportunities. Thomas J. Herzfeld Advisors currently manages approximately $950 million in assets and has maintained a Morningstar 5-star performance rating for 40 consecutive quarters.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a distribution of $0.2325 per share paid on January 13, 2025, under its Managed Distribution Policy. The distribution represents a 15% annual rate based on the Fund's June 30, 2024 net asset value.

The Board recently modified the Policy to maintain the 15% annual distribution rate but with flexible distribution periods (quarterly, semi-annual, or annual) to accommodate year-end regulatory capital gains distributions. The current distribution consists entirely of return of capital. The Fund reports a -4.50% average annual return over the past 5 years, with a current annualized distribution rate of 15.15% of NAV. The Fund's cumulative total return for the fiscal year through December 31, 2024, stands at 6.53%.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) has announced a cash distribution of $0.2325 per share, to be paid on January 13, 2025, to stockholders of record as of December 31, 2024. This distribution reflects 9.69% of the Fund's market price and 7.22% of its net asset value as of December 19, 2024.

The distribution is part of the Fund's managed distribution policy, which aims to maintain an annual rate of 15% of the Fund's net asset value. The Board recently modified the policy to allow for quarterly, semi-annual, or annual distribution periods. The current distribution is expected to consist entirely of return of capital, which may affect the Fund's total assets and expense ratio.

The Herzfeld Caribbean Basin Fund (NASDAQ: CUBA) announced significant leadership changes effective December 31, 2024. Thomas J. Herzfeld, the Fund's Chairman since its 1994 launch, will retire from the Board of Directors and his position as Portfolio Manager, becoming Chairman Emeritus with non-voting participation in board meetings.

Cecilia Gondor, a board member since 2014 and former Executive VP of Thomas J. Herzfeld Advisors, will succeed as Chairperson. Additionally, Brigitta Herzfeld, current member of the investment manager's executive committee, will join the Board. She brings experience from Goldman Sachs and Lehman Brothers Japan, along with advanced degrees from prestigious institutions.

The Herzfeld Caribbean Basin Fund (Nasdaq: CUBA) has announced the final results of its cash tender offer. The Fund offered to purchase up to 5% (827,416 shares) of its outstanding common shares at 97.5% of its NAV. The purchase price was set at $3.2273 per share. Due to oversubscription with 11,685,770 shares tendered, the Fund will purchase shares on a pro-rata basis with a factor of 7.08052%. After the tender offer completion, the Fund will have 15,720,897 outstanding common shares.