N-Q 1 v094745_nq.txt FORM N-Q QUARTERLY SCHEDULE OF PORFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act file number 811-06445 ---------------- The Herzfeld Caribbean Basin Fund, Inc. -------------------------------------------------------------------------------- (Exact name of registrant as specified in charter) P.O. BOX 161465, MIAMI, FLORIDA 33116 -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip code) THOMAS J. HERZFELD P.O. BOX 161465, MIAMI, FL 33116 -------------------------------------------------------------------------------- (Name and address of agent for service) Registrant's telephone number, including area code: 305-271-1900 -------------------------------------------------------------------------------- Date of fiscal year end: 06/30/08 -------------------------------------------------------------------------------- Date of reporting period: 09/30/07 -------------------------------------------------------------------------------- ITEM 1. SCHEDULE OF INVESTMENTS SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2007 (unaudited) ================================================================================ Shares or Principal Amount Description Market Value -------------------------------------------------------------------------------- Common stocks - 79.04% of net assets Banking and finance - 5.22% 10,500 Bancolombia, S.A $ 363,825 19,720 Banco Latinoamericano de Exportaciones, S.A 358,510 1,500 Doral Financial Corp. 32,940 16,400 Grupo Financiero Banorte, S.A. de C.V. Series O 64,942 9,900 Grupo Financiero Inbursa, S.A. de C.V. Series O 23,721 Communications - 12.91% 35,600 America Movil, S.A. de C.V. Series A 110,531 50,891 America Movil, S.A. de C.V. Series L 162,894 3,000 America Movil 192,000 14,950 Atlantic Tele-Network, Inc. 543,432 11,900 Carso Global Telecom, S.A. de C.V. Series A1 51,693 141,000 Fuego Entertainment 45,120 1,000 Garmin Ltd. 119,400 871 Grupo Iusacell, S.A. de C.V. Series V 8,762 18,800 Grupo Radio Centro, S.A. ADR 244,212 12,900 Grupo Televisa, S.A. ADR 311,793 13,400 Grupo Televisa, S.A. Series CPO 64,398 9,320 Spanish Broadcasting System Inc. 24,045 1,000 Telefonos de Mexico ADR 32,870 23,800 Telefonos de Mexico, S.A. de C.V. Series A 39,831 78,600 Telefonos de Mexico, S.A. de C.V. Series L 128,884 13,900 TV Azteca, S.A. de C.V. Series CPO 7,640 Conglomerates and holdings companies - 2.42% 250,000 Admiralty Holding Co. 2,750 5,400 Alfa, S.A. de C.V. Series A 36,495 42,595 BB Holdings Ltd. 180,070 13,000 Carlisle Group Ltd. 34,431 3,200 Corporacion Interamericana de Entretenimiento, S.A. de C.V. Series B 9,101 20 Dermet de Mexico Com Serie B 3 11,000 Grupo Carso, S.A. de C.V. Series A1 41,949 1,580 Grupo Kuo SAB de CV 1,373 2,525 OneSource Services, Inc. 33,438 2,900 Vitro, S.A. Series A 7,200 6,000 Vitro, S.A. ADR 45,000 Construction and related - 4.91% 47,864 Cemex, S.A. de C.V. Series CPO 142,962 5,098 Cemex S.A. de C.V. ADR 152,532 2,032 Ceramica Carabobo Class A ADR 5,677 1,580 Dine S.A.B de C.V. 1,443 17,200 Consorcio ARA, S.A. de C.V. 23,044 3,583 Empresas ICA, Sociedad Controladora, S.A. de C.V. 21,610 800 Grupo Cementos de Chihuahua, S.A. de C.V 4,894 4,000 Lennar Corp 90,600 24,950 Mastec, Inc. 351,047 Consumer products and related manufacturing - 5.92% 800,000 Atlas Electricas, S.A 104,143 7,773 Grupo Casa Saba, S.A. ADR 295,374 12,000 Watsco Incorporated 557,160 Food, beverages and tobacco - 2.95% 1,200 Alsea, S.A. de C.V. 1,983 7,500 Coca-Cola Femsa, S.A. de C.V. ADR 321,825 200 Coca-Cola Femsa, S.A. de C.V., Series L 858 18,900 Fomento Economico Mexicano, S.A. de C.V. Series UBD 70,417 800 Gruma S.A. de C.V. Series B 2,596 7,600 Grupo Bimbo, S.A. de C.V. Series A 42,397 7,700 Grupo Modelo, S.A.Series B 36,969 Housing - 0.09% 1,700 Corporacion Geo S.A. de C.V., Series B 7,461 100 Desarrolladora Homex, S.A. de C.V. 926 400 Sare Holding, S.A. de C.V. Series B 603 1,500 Urbi Dessarrollos Urbanos, S.A. de C.V. 5,391 Investment companies - 4.85% 5,500 The Mexico Fund 233,255 19,000 Western Asset Worldwide Income Fund 251,560 16,823 Western Asset Emerging Markets Debt Fund 300,122 Leisure - 7.21% 10,500 Carnival Corp. 508,515 13,500 Royal Caribbean Cruises Ltd. 526,905 3,000 Steiner Leisure Ltd. 130,200 Medical - 3.33% 8,386 Micromet, Inc. 16,604 10,660 Orthofix International N.V. 522,020 Mining - 0.05% 1,200 Grupo Mexico, S.A. de C.V., Series B 8,615 Pulp and paper - 0.17% 6,100 Kimberly-Clark de Mexico, S.A. de C.V. Series A 27,497 Railroad and landholdings - 1.28% 4,000 Norfolk South Corp 207,640 Retail - 1.24% 3,700 Controladora Comercial Mexicana, S.A. de C.V Series UBC 9,816 1,270 Grupo Elektra, S.A. de C.V. Series CPO 25,912 45,111 Wal-Mart de Mexico, S.A. de C.V. Series V 165,432 Service - 0.02% 700 Grupo Aeroportuario del Sureste, S.A. de C.V. Series B 3,475 100 Promotora Ambiental S.A. de C.V. 274 Trucking and marine freight - 13.10% 14,800 Grupo TMM, S.A. ADR 46,768 770 Seaboard Corporation 1,509,200 42,699 Trailer Bridge, Inc. 546,547 1,000 Ultrapetrol Bahamas Ltd. 16,610 Utilities - 9.60% 12,000 Caribbean Utilities Ltd. Class A 142,800 43,241 Consolidated Water, Inc. 1,298,095 700 Cuba Electric Company 12,600 6,000 Teco energy Inc. 98,580 Other - 3.76% 9,000 Copa Holdings 360,450 55,921 Margo Caribe, Inc. 237,664 100 Mexichem S.A. de C.V. 355 843 Siderurgica Venezolana Sivensa ADR 8,657 75 Siderurgica Venezolana Sivensa Series B 770 Total common stocks (cost $8,446,034) $ 12,782,103 Bonds and fixed income - 6.17% of net assets 165,000 Republic of Cuba - 4.5%, 1977 - in default (cost $63,038) -- 1,000,000 U.S. Treasury Bills (cost $997,382) $ 998,486 Other assets less liabilities - 14.78% of net assets $ 2,390,103 Net assets - 100% (applicable to 1,687,556 shares; equivalent to $8.56 per share) (a) $ 16,170,692 (a) The cost for federal income tax purposes was $9,530,783. At September 30,2007, net unrealized gain for all securities based on tax cost was $4,249,806. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess value over tax cost of $4,959,454 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $709,648. The cost of securities owned for financial statement purposes is lower than the cost basis for income tax purposes by approximately $24,329 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 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 ------------------------- Thomas J. Herzfeld Chairman and President Date: November 16, 2007 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 ------------------------- Thomas J. Herzfeld Chairman and President Date: November 16, 2007 By /s/ Cecilia L. Gondor ------------------------ Cecilia L. Gondor Treasurer Date: November 16, 2007