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: 06/30/08
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Date of reporting period: 09/30/07
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ITEM 1. SCHEDULE OF INVESTMENTS
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2007 (unaudited)
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Shares or
Principal Amount Description Market Value
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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
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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
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Thomas J. Herzfeld
Chairman and President
Date: November 16, 2007
By /s/ Cecilia L. Gondor
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Cecilia L. Gondor
Treasurer
Date: November 16, 2007