FORM N-Q
QUARTERLY SCHEDULE OF PORFOLIO HOLDINGS OF REGISTERED MANAGEMENT
INVESTMENT COMPANY
Investment Company Act file number 811-06445
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The Herzfeld Caribbean Basin Fund, Inc.
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(Exact name of registrant as specified in charter)
P.O. BOX 161465, MIAMI, FLORIDA 33116
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(Address of principal executive offices) (Zip code)
THOMAS J. HERZFELD
P.O. BOX 161465, MIAMI, FL 33116
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(Name and address of agent for service)
Registrant's telephone number, including area code: 305-271-1900
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Date of fiscal year end: 06/30/09
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Date of reporting period: 09/30/08
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ITEM 1. SCHEDULE OF INVESTMENTS
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2008 (unaudited)
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Shares or
Principal Amount Description Market Value
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Common stocks - 99.72% of net assets
Banking and finance - 9.36%
34,500 Bancolombia, S.A $ 981,525
44,420 Banco Latinoamericano de Exportaciones, S.A 640,536
50,000 Banco Popular, Inc. 414,500
6,500 Doral Financial Corp. 70,980
16,400 Grupo Financiero Banorte, S.A. de C.V. Series O 52,092
9,900 Grupo Financiero Inbursa, S.A. de C.V. Series O 33,879
192,200 W Holding Co.Inc. 103,788
Communications - 19.07%
35,600 America Movil, S.A. de C.V. Series A 79,382
50,891 America Movil, S.A. de C.V. Series L 117,461
20,000 America Movil 927,200
36,819 Atlantic Tele-Network, Inc. 1,030,932
11,900 Carso Global Telecom, S.A. de C.V. Series A1 60,651
176,000 Fuego Entertainment 8,800
19,000 Garmin Ltd. 644,860
871 Grupo Iusacell, S.A. de C.V. Series V 6,228
21,120 Grupo Radio Centro, S.A. ADR 222,816
32,400 Grupo Televisa, S.A. ADR 708,588
13,400 Grupo Televisa, S.A. Series CPO 58,698
80,304 Spanish Broadcasting System Inc. 30,516
15,000 Telefonos de Mexico ADR 386,250
23,800 Telefonos de Mexico, S.A. de C.V. Series A 30,109
78,600 Telefonos de Mexico, S.A. de C.V. Series L 100,151
15,000 Telmex International S.A.B. de C.V ADR 195,000
23,800 Telmex International Series A 14,296
78,600 Telmex International Series L 51,506
13,900 TV Azteca, S.A. de C.V. Series CPO 8,691
Conglomerates and holdings companies - 1.47%
250,000 Admiralty Holding Co. 625
5,400 Alfa, S.A. de C.V. Series A 24,180
42,595 BB Holdings Ltd. 161,337
30,300 Cocleshell Ltd. Ord 28,894
3,200 Corporacion Interamericana de Entretenimiento,
S.A. de C.V. Series B 5,184
11,000 Grupo Carso, S.A. de C.V. Series A1 41,848
1,580 Grupo Kuo SAB de CV 892
20 Grupo Pochetca S.A.B. de C.V. 5
3,250 Shellshock Ltd. Ord. 3,592
2,900 Vitro, S.A. Series A 3,210
27,918 Vitro, S.A. ADR 90,175
Construction and related - 5.63%
21,863 Cemex, S.A. de C.V. Series CPO 376,481
49,599 Cemex S.A. de C.V. ADR 85,318
20 Ceramica Carabobo Class A ADR 4,657
17,200 Consorcio ARA, S.A. de C.V. 9,549
1,580 Dine S.A.B de C.V. 1,136
3,583 Empresas ICA, Sociedad Controladora, S.A. de C.V. 10,370
800 Grupo Cementos de Chihuahua, S.A. de C.V 3,131
67,132 Mastec, Inc. 892,184
Consumer products and related manufacturing - 8.62%
1,211,664 Atlas Electricas, S.A 179,927
13,273 Grupo Casa Saba, S.A. ADR 378,281
31,000 Watsco Incorporated 1,558,680
Food, beverages and tobacco - 6.53%
1,219 Alsea, S.A. de C.V. 921
3,000 Chiquita Brands International Inc. 47,430
19,500 Coca-Cola Femsa, S.A. de C.V. ADR 983,970
200 Coca-Cola Femsa, S.A. de C.V., Series L 1,012
18,900 Fomento Economico Mexicano, S.A. de C.V. Series UBD 71,954
18,690 Fresh Del Monte Produce Inc. 414,918
800 Gruma S.A. de C.V. Series B 1,638
7,600 Grupo Bimbo, S.A. de C.V. Series A 47,589
7,700 Grupo Modelo, S.A.Series B 32,587
Housing - 2.11%
1,700 Corporacion Geo S.A. de C.V., Series B 3,861
100 Desarrolladora Homex, S.A. de C.V. 739
33,500 Lennar Corp. 508,865
400 Sare Holding, S.A. de C.V. Series B 160
1,500 Urbi Dessarrollos Urbanos, S.A. de C.V. 3,485
Investment companies - 5.45%
18,110 Latin America Equity Fund 593,103
26,140 The Mexico Fund 653,500
4,420 Shellproof Limited 4,294
9,000 Western Asset Worldwide Income Fund 87,840
141 Western Asset Emerging Markets Debt Fund 1,806
Leisure - 10.18%
37,500 Carnival Corp. 1,325,625
33,500 Royal Caribbean Cruises Ltd. 695,125
13,900 Steiner Leisure Ltd. 477,882
Medical - 1.95%
8,386 Micromet, Inc. 37,150
23,660 Orthofix International N.V. 440,786
Mining - 0.02%
3,624 Grupo Mexico, S.A. de C.V., Series B 3,793
Pulp and paper - 0.11%
6,100 Kimberly-Clark de Mexico, S.A. de C.V. Series A 26,371
Railroad and landholdings - 4.31%
16,000 Norfolk South Corp 1,059,360
Retail - 0.85%
3,700 Controladora Comercial Mexicana, S.A. de C.V
Series UBC 8,503
1,270 Grupo Elektra, S.A. de C.V. Series CPO 43,923
45,111 Wal-Mart de Mexico, S.A. de C.V. Series V 157,248
Service - 0.01%
700 Grupo Aeroportuario del Sureste, S.A. de C.V. Series B 3,424
100 Promotora Ambiental S.A. de C.V. 190
Trucking and marine freight - 11.40%
61,404 Grupo TMM, S.A. ADR 54,650
1,201 Seaboard Corporation 1,509,657
21,000 Teekay Corporation 553,980
8,361 Teekay LNG Partners LP. 131,268
66,797 Trailer Bridge, Inc. 368,052
23,000 Ultrapetrol Bahamas Ltd. 180,550
Utilities - 7.91%
12,000 Caribbean Utilities Ltd. Class A 118,200
68,241 Consolidated Water, Inc. 1,161,462
700 Cuban Electric Company 8,400
41,500 Teco energy Inc. 652,795
Other - 4.74%
33,000 Copa Holdings 1,072,500
13,000 Impellam Group 11,007
55,921 Margo Caribe, Inc. 69,901
300 Mexichem S.A. de C.V. 543
895 Siderurgica Venezolana Sivensa ADR 9,649
79 Siderurgica Venezolana Sivensa Series B 852
Total common stocks (cost $27,633,151) $ 24,481,609
Bonds and fixed income - 0.00% of net assets
165,000 Republic of Cuba - 4.5%, 1977 -
in default (cost $63,038) --
Other assets less liabilities - 0.28% of net assets $ 69,813
Net assets - 100% (applicable to 3,713,070 shares; equivalent
to $6.61 per share) (a) $ 24,551,422
(a) The cost for federal income tax purposes was $27,764,571. At September 30,
2008, net unrealized loss for all securities based on tax cost was $3,282,962.
This consisted of aggregate gross unrealized appreciation for all securities in
which there was an excess value over tax cost of $2,646,145 and aggregate gross
unrealized depreciation for all securities in which there was an excess of tax
cost over value of $5,929,107. The cost of securities owned for financial
statement purposes is lower than the cost basis for income tax purposes by
approximately $68,382 due to wash sale adjustments.
ITEM 2. CONTROLS AND PROCEDURES
(a) The registrant's principal executive and principal financial officer
have concluded that the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940, as amended (the "1940 Act") (17 CFR 270.30a-3(c))) are
effective, as of a date within 90 days of the filing date of this
Form N-Q that includes the disclosure required by this paragraph
based on their evaluation of the controls and procedures required by
Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules
13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17
CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act
(17 CFR 270.30a-3(d)) that occurred during the registrant's last
fiscal quarter that has materially affected, or is reasonably likely
to materially affect, the registrant's internal control over
financial reporting.
ITEM 3. EXHIBITS
The certifications required by Rule 30a-2 of the Investment Company Act of 1940,
as amended, is attached as an exhibit to this filing.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
The Herzfeld Caribbean Basin Fund, Inc.
By /s/ Thomas J. Herzfeld
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Thomas J. Herzfeld
Chairman and President
Date: November 12, 2008
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By /s/ Thomas J. Herzfeld
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Thomas J. Herzfeld
Chairman and President
Date: November 12, 2008
By /s/ Cecilia L. Gondor
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Cecilia L. Gondor
Treasurer
Date: November 12, 2008