Speculation surrounding Fidel Castro’s demise would make many sigh with relief. Last week, during May Day celebrations, Castro was nowhere to be seen and his absence brought up much banter about his health and return to power. Absurdly, this speculation caused a spike in the Herzfeld Carribean Fund (CUBA), reports Jason Shade for Seeking Alpha.
The fund raised 12% to 12.56 a share.
In retrospect, this is not the first time Fidels’ possible demise has given this fund a boost. Is this fund driven by headlines instead of actual stock performances? After reviewing the funds major holdings there is no evidence to support any pure plays that would benefit from the lifting of the U.S.-Cuban embargo. About 65% of the funds holdings are U.S. companies. If there were a lift, the companies may see a run up in business but not enough to actually boost shares. Although it would be nice to dream of being able to invest in Cuba via an ETF one day, the probabilities are distant; even when Fidel is no longer smoking cigars.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.