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: 06/30/06
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Date of reporting period: 09/30/06
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ITEM 1. SCHEDULE OF INVESTMENTS
SCHEDULE OF INVESTMENTS AS OF SEPTEMBER 30, 2006 (unaudited)
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Shares or
Principal Amount Description Market Value
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Common stocks - 99.65% of net assets
Banking and finance - 5.17%
8,500 Bancolombia, S.A $ 243,100
21,920 Banco Latinoamericano de Exportaciones, S.A 342,390
8,000 Doral Financial Corp. 52,720
16,400 Grupo Financiero Banorte, S.A. de C.V. Series O 51,326
9,900 Grupo Financiero Inbursa, S.A. de C.V. Series O 17,333
Communications - 11.84%
35,600 America Movil, S.A. de C.V. Series A 70,262
2,000 America Movil, S.A. de C.V. Series L 78,740
12,500 America Telecom, S.A. de C.V. Series A1 84,699
9,250 Atlantic Tele-Network, Inc. 170,940
11,900 Carso Global Telecom, S.A. de C.V. Series A1 36,236
11,000 Garmin Ltd. 536,580
725 Grupo Iusacell, S.A. de C.V. Series V 4,682
16,800 Grupo Radio Centro, S.A. ADR 107,520
14,300 Grupo Televisa, S.A. ADR 304,018
13,400 Grupo Televisa, S.A. Series CPO 57,148
1,000 Telefonos de Mexico ADR 25,580
23,800 Telefonos de Mexico, S.A. de C.V. Series A 30,522
78,600 Telefonos de Mexico, S.A. de C.V. Series L 100,799
13,900 TV Azteca, S.A. de C.V. Series CPO 9,027
Conglomerates and holdings companies - 2.02%
5,400 Alfa, S.A. de C.V. Series A 29,513
42,595 BB Holdings Ltd. 125,696
13,000 Carlisle Group Ltd. 21,852
3,200 Corporacion Interamericana de Entretenimiento,
S.A. de C.V. Series B 5,737
1,580 Desc, S.A. de C.V. Series B 1,344
11,000 Grupo Carso, S.A. de C.V. Series A1 32,015
600 Grupo Imsa, S.A. de C.V. Series UBC 2,619
2,525 OneSource Services, Inc. 31,691
3,300 U.S. Commercial Corp., S.A. de C.V. 720
2,900 Vitro, S.A. Series A 3,421
6,000 Vitro, S.A. ADR 21,360
Construction and related - 8.61%
46,718 Cemex, S.A. de C.V. Series CPO 140,985
4,000 Cemex S.A. de C.V. ADR 120,320
2,032 Ceramica Carabobo Class A ADR 3,256
4,300 Consorcio ARA, S.A. de C.V. 21,115
3,583 Empresas ICA, Sociedad Controladora, S.A. de C.V. 12,905
800 Grupo Cementos de Chihuahua, S.A. de C.V 3,012
16,600 Florida Rock Industries, Inc. 642,586
20,950 Mastec, Inc. 231,917
Consumer products and related manufacturing - 6.96%
800,000 Atlas Electricas, S.A 41,426
5,900 Grupo Casa Saba, S.A. ADR 127,440
17,500 Watsco Incorporated 782,170
Food, beverages and tobacco - 2.02%
300 Alsea, S.A. de C.V. 1,235
4,800 Coca-Cola Femsa, S.A. de C.V. ADR 150,096
200 Coca-Cola Femsa, S.A. de C.V., Series L 622
6,300 Fomento Economico Mexicano, S.A. de C.V. Series UBD 61,168
800 Gruma S.A. de C.V. Series B 2,446
7,600 Grupo Bimbo, S.A. de C.V. Series A 26,682
7,700 Grupo Modelo, S.A. de C.V. Series C 33,609
Housing - 0.09%
1,700 Corporacion Geo S.A. de C.V., Series B 7,151
100 Desarrolladora Homex, S.A. de C.V. 628
400 Sare Holding, S.A. de C.V. Series B 444
1,500 Urbi Dessarrollos Urbanos, S.A. de C.V. 4,222
Investment companies - 6.21%
2,000 iShares S&P Latin America 40 Index 284,700
4,000 The Mexico Fund 137,640
19,000 Salomon Brothers Worldwide Income Fund 251,370
10,000 Salomon Brothers Emerging Markets Debt Fund 174,700
Leisure - 9.65%
14,000 Carnival Corp. 658,420
17,000 Royal Caribbean Cruises Ltd. 659,770
Medical - 3.71%
8,386 Micromet, Inc. 22,391
10,660 Orthofix International N.V. 484,710
Mining - 0.03%
1,200 Grupo Mexico, S.A. de C.V., Series B 3,758
Pulp and paper - 0.18%
6,100 Kimberly-Clark de Mexico, S.A. de C.V. Series A 24,689
Railroad and landholdings - 20.27%
48,500 Florida East Coast Industries Inc. 2,768,380
Retail - 1.26%
3,700 Controladora Comercial Mexicana, S.A. de C.V
Series UBC 7,437
1,380 Grupo Elektra, S.A. de C.V. Series CPO 13,243
44,612 Wal-Mart de Mexico, S.A. de C.V. Series V 151,753
Service - 0.02%
700 Grupo Aeroportuario del Sureste, S.A. de C.V. Series B 2,610
100 Promotora Ambiental S.A. de C.V. 120
Trucking and marine freight - 8.86%
14,800 Grupo TMM, S.A. ADR 42,920
700 Seaboard Corporation 843,500
41,799 Trailer Bridge, Inc. 323,524
Utilities - 9.61%
12,000 Caribbean Utilities Ltd. Class A 143,400
47,241 Consolidated Water, Inc. 1,160,711
700 Cuba Electric Company 8,120
Other - 3.14%
3,000 Copa Holdings 102,990
55,921 Margo Caribe, Inc. 315,954
100 Mexichem S.A. de C.V. 127
843 Siderurgica Venezolana Sivensa ADR 2,825
75 Siderurgica Venezolana Sivensa Series B 251
45,000 Xcelera, Inc. 6,750
Total common stocks (cost $8,658,503) $ 13,611,788
Bonds - 0% of net assets
165,000 Republic of Cuba - 4.5%, 1977 -
in default (cost $63,038) --
Other assets less liabilities - 0.35% of net assets $ 47,245
Net assets - 100% (applicable to 1,677,636 shares; equivalent
to $8.14 per share) (a) $ 13,659,033
(a) The cost for federal income tax purposes was $8,721,541. At September 30,
2006, net unrealized gain for all securities based on tax cost was $4,890,246.
This consisted of aggregate gross unrealized appreciation for all securities in
which there was an excess value over tax cost of $5,490,520 and aggregate gross
unrealized depreciation for all securities in which there was an excess of tax
cost over value of $600,274.
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 2, 2006
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 2, 2006
By /s/ Cecilia L. Gondor
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Cecilia L. Gondor
Treasurer
Date: November 2, 2006