CUBA ETF Management Responds To The Death Of Fidel Castro
Fidel Castro, Cuba's revolutionary dictator, passed away November 25. Shares of Herzfeld Caribbean Basin Fund, Inc (NASDAQ: CUBA), a fund that seeks to invest in companies that benefit from economic development in Caribbean countries including Cuba, rose more than 10 percent in pre-market trading Monday, November 28.
Shares of CUBA soon changed course, however, following the statement of President-elect Donald Trump, who threatened via a tweet to terminate U.S.-Cuba relations if Cuba refused to make Cubans and the United States "a better deal." CUBA fell 1.8 percent following the tweet, with the negative sentiment carrying over into the next day's trading.
Benzinga asked Herzfeld chairman and CUBA ETF portfolio manager Thomas Herzfeld how the company received the news of Castro's death. Below is his response:
- "The death of Fidel Castro is of great consequence. A new era is beginning for Cuba and it will be different than it was when Fidel Castro was alive. We at Herzfeld Advisors are hopeful for a bright future for Cuba and its people. In Cuba, the private sector will grow and the efforts will be to have a great future, the past we cannot change.
- "We believe and hope for rapid growth of Cuba’s middle class, where many workers, both professional and blue collar, will have the potential to develop their own businesses, work in elected offices or in the private sector.
"The Herzfeld/CUBA division of Thomas J. Herzfeld Advisors, has been investing in the Caribbean for 25 years. We appreciate the trust investors have placed in us and continue to look forward with confidence in this new era that is beginning."
CUBA shares closing Tuesday at $6.72, down nearly 4 percent for the day.
Image Credit: Fidel Castro speaking in Havana, 1978. By Marcelo Montecino - http://www.flickr.com/photos/marcelo_montecino/9609361/, CC BY-SA 2.0, Wikimedia Commons
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