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: 06/30/06 -------------------------------------------------------------------------------- Date of reporting period: 09/30/05 -------------------------------------------------------------------------------- ITEM 1. SCHEDULE OF INVESTMENTS SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2005 (unaudited) ================================================================================ Shares or Principal Amount Description Market Value -------------------------------------------------------------------------------- Common stocks - 100.08% of net assets Banking and finance - 4.58% 8,000 Bancolombia, S.A $ 175,600 21,920 Banco Latinoamericano de Exportaciones, S.A 372,202 1,000 Doral Financial Corp. 13,070 4,000 Grupo Financiero Banorte, S.A. de C.V. Series O 35,660 9,500 Grupo Financiero Inbursa, S.A. de C.V. Series O 16,432 Communications - 11.51% 35,000 America Movil, S.A. de C.V. Series A 45,448 135,900 America Movil, S.A. de C.V. Series L 178,736 12,200 America Telecom, S.A. de C.V. Series A1* 50,579 4,100 Atlantic Tele-Network, Inc. 136,120 11,900 Carso Global Telecom, S.A. de C.V. Series A1* 23,508 7,000 Garmin Ltd. 474,810 725 Grupo Iusacell, S.A. de C.V. * 1,813 16,800 Grupo Radio Centro, S.A. ADR 124,152 4,500 Grupo Televisa, S.A. GDR 322,695 13,000 Grupo Televisa, S.A. Series CPO 46,419 1,000 Telefonos de Mexico ADR 21,270 23,400 Telefonos de Mexico, S.A. de C.V. Series A 23,873 78,600 Telefonos de Mexico, S.A. de C.V. Series L 83,544 13,900 TV Azteca, S.A. de C.V. Series CPO 8,327 Conglomerates and holdings companies - 2.98% 5,300 Alfa, S.A. de C.V. Series A 32,541 39,400 BB Holdings Ltd. 264,413 15,760 Carlisle Group Ltd. 43,529 3,200 Corporacion Interamericana de Entretenimiento, S.A. de C.V. Series B* 7,007 7,900 Desc, S.A. de C.V. Series B* 2,074 10,700 Grupo Carso, S.A. de C.V. Series A1 23,668 500 Grupo Imsa, S.A. de C.V. Series UBC 1,294 3,300 U.S. Commercial Corp., S.A. de C.V.* 1,224 2,900 Vitro, S.A. Series A 3,362 6,000 Vitro, S.A. ADR 20,580 Construction, housing and related - 11.06% 22,416 Cemex, S.A. de C.V. Series CPO 116,630 500 Cemex S.A. de C.V. ADR 26,150 2,032 Ceramica Carabobo Class A ADR* 3,123 4,200 Consorcio ARA, S.A. de C.V 15,932 1,300 Corporacion Geo S.A. de C.V. Series B 4,039 100 Desarrolladora Homex, S.A. de C.V 510 19,700 Empresas ICA, Sociedad Controladora, S.A. de C.V.* 7,510 600 Grupo Cementos de Chihuahua, S.A. de C.V 1,697 16,600 Florida Rock Industries, Inc. 1,063,894 100 Hylsamex S.A. CPO 334 21,950 Mastec, Inc.* 239,255 200 Sare Holding, S.A. de C.V. Series B 189 300 Urbi Dessarrollos Urbanos, S.A. de C.V 2,226 Consumer products and related manufacturing - 7.60% 800,000 Atlas Electricas, S.A 31,160 4,900 Grupo Casa Saba, S.A. ADR 84,084 17,000 Watsco Incorporated 902,870 Food, beverages and tobacco - 1.66% 200 Alsea, S.A. de C.V 519 4,800 Coca-Cola Femsa, S.A. de C.V. ADR 128,208 200 Coca-Cola Femsa, S.A. de C.V., Series L 536 6,200 Fomento Economico Mexicano, S.A. de C.V. Series UBD 43,225 600 Gruma S.A. de C.V. Series B 1,544 7,500 Grupo Bimbo, S.A. de C.V. Series A 24,353 7,600 Grupo Modelo, S.A. de C.V. Series C 24,530 Investment companies - 10.60% 13,529 The Latin American Discovery Fund, Inc. 368,530 24,745 The Latin America Equity Fund, Inc. 767,095 4,784 The Mexico Fund 136,057 5,064 Salomon Brothers Emerging Markets Debt Fund 93,937 4,075 Salomon Brothers Global High Income Fund 54,401 Leisure - 7.70% 5,500 Carnival Corp. 274,890 17,500 Royal Caribbean Cruises Ltd. 756,000 Medical - 3.04% 15,159 CancerVax Corp. 52,147 8,160 Orthofix International N.V.* 355,776 Pulp and paper - 0.17% 6,000 Kimberly-Clark de Mexico, S.A. de C.V. Series A 22,593 Railroad and landholdings - 17.07% 50,500 Florida East Coast Industries Inc. 2,287,145 Retail - 0.96% 3,700 Controladora Comercial Mexicana, S.A. de C.V Series UBC 5,827 1,380 Grupo Elektra, S.A. de C.V. Series CPO 10,348 22,006 Wal-Mart de Mexico, S.A. de C.V. Series V 111,927 Trucking and marine freight - 9.67% 14,800 Grupo TMM, S.A. ADR* 60,680 640 Seaboard Corporation 878,720 41,799 Trailer Bridge, Inc.* 355,292 Utilities - 8.32% 12,000 Caribbean Utilities Ltd. Class A 140,400 48,600 Consolidated Water, Inc. 974,430 Other - 3.16% 600 Grupo Aeroportuario del Sureste, S.A. de C.V. Series B 2,365 900 Grupo Mexico, S.A. de C.V. Series B 1,770 52,921 Margo Caribe, Inc.* 402,200 843 Siderurgica Venezolana Sivensa ADR 1,362 75 Siderurgica Venezolana Sivensa Series B 121 45,000 Xcelera, Inc.* 15,750 Total common stocks (cost $7,339,409) $ 13,406,231 Bonds - 0% of net assets 165,000 Republic of Cuba - 4.5%, 1977 - in default (cost $63,038)* -- Other assets less liabilities - (0.08%) of net assets $ (10,727) Net assets - 100% (applicable to 1,677,636 shares; equivalent to $7.98 per share) (a) $ 13,395,504 *Non-income producing (a) The cost for federal income tax purposes was $7,402,448. At September 30, 2005, net unrealized gain for all securities based on tax cost was $6,003,783. This consisted of aggregate gross unrealized appreciation for all securities in which there was an excess value over tax cost of $6,414,002 and aggregate gross unrealized depreciation for all securities in which there was an excess of tax cost over value of $410,219. 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 certification 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 ------------------------- Thomas J. Herzfeld Chairman and President Date: November 9, 2005 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 9, 2005 By /s/Cecilia L. Gondor ------------------------ Cecilia L. Gondor Treasurer Date: November 9, 2005