Herzfeld Caribbean Basin: Investing in Cuba

12/05/2016 9:00 am EST

Focus: FUNDS

Jimmy Mengel

Editor, Outsider Club

President Obama relaxed trade restrictions with Cuba in 2014 — through executive order — and plenty of investors are now worried about what a Trump presidency will mean, notes Jimmy Mengel, editor of Outsider Club.

I think that Trump’s comments about terminating relationships with Cuba are a lot of bluster; there is simply too much opportunity.

They will reach an agreement, and you can bet your bottom dollar that Donald Trump wants a Trump hotel or casino in Havana.

Now, I’m not betting on those intangibles. If Cuba opens up, there will be several opportunities -- and you can actually invest in them all in one fell swoop with The Herzfeld Caribbean Basin Fund (CUBA).

The fund has holdings in several major players involved in Cuba:

MasTec (MTZ)

It engineers, procures, constructs, and maintains the infrastructures that enable electric transmission and distribution, oil, and natural gas pipelines.

Copa Holdings (CPA)

Copa Holdings provides airline passenger and cargo services in Latin America.

Royal Caribbean Cruises (RCL)

Royal Caribbean Cruises operates as a cruise company. The company operates cruises under the Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisières de France, and TUI Cruises brand names.

Lennar (LEN)

Lennar Corporation operates primarily through the construction and sale of single-family attached and detached homes to first-time, move-up, and active adult homebuyers, as well as the purchase, development, and sale of residential land.

Norwegian Cruise Line Holdings (NCLH)

Norwegian provides cruises to approximately 510 destinations worldwide. It operates 24 ships under the Norwegian Cruise Line, Oceania Cruises, and Regent Seven Seas Cruises brands with approximately 46,500 Berths.

The Herzfeld Caribbean Basin Fund is a play on all of these major companies that will do great business once Cuba and the US agree to reasonable terms.

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By Jimmy Mengel, Editor of Outsider Club

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