Fund Boosts Stake in CUBA ETF (CUBA) By James Garrett Baldwin
October 18, 2016 — 7:58 AM EDT
Blue Bell Private Wealth Management announced it has added a stake in
the Herzfeld Caribbean Basin Fund (CUBA) to its portfolio. In an Oct. 14
filing with the Securities Exchange Commission, the wealth manager said
that it holds 4,381 shares in the exchange-traded fund (ETF). At closing
price on Oct. 17, the stake was valued at $171,680.87.
The CUBA ETF consists of 33 companies poised to benefit from improved
commerce between the United States and Cuba, particularly in the travel
and hospitality industries. Primary holdings include MasTec Inc. (MTZ);
Copa Holdings SA (CPA);, Royal Caribbean Cruises (RCL); Lennar Corp
(LEN) [5.78%]; and Norwegian Cruise Line Holdings. (See also: How To
Invest In Cuba).
The position appears to be highly speculative given that the CUBA ETF
comprises just 0.02% of the wealth manager's portfolio. However, the
fund has gained positive traction in recent weeks as the Obama
administration continues its efforts to normalize relations with the
communist nation. (See also: Cuba's Economy: An Overview.)
Hedge fund creative planning slashed its stake in the CUBA ETF in the
most recent quarter. The fund sold 7,067 shares, leaving its current
stake at just 500 shares.
The CUBA ETF is a relatively speculative ETF given the state of affairs
between the United States and the communist island nation. (See also:
Cuba's Economy: An Overview.)
The latest efforts between the Obama administration and Cuban leaders
came last week, when the U.S. lifted its $100 limit restriction on Cuban
rum and cigars through customs. American travelers can now return from
Cuba and other nations with unlimited quantities of cigars and rums and
pay duty taxes on the products.
Moving forward, investors should pay close attention to additional
efforts by travel and hospitality companies to expand their reach into
Cuba. As the U.S. reduces red tape and encourages travel and commerce
between the countries, the CUBA ETF could evolve from a speculative
position to a valuable investment with steady, upside appreciation.
Source: Fund Boosts Stake in CUBA ETF (CUBA) | Investopedia -