RealMoney: Cuba Fund Surges as Fidel Castro's Death Spurs Speculation
By SIMON CONSTABLE
Cuba's longstanding dictator Fidel Castro barely got one foot in the grave and already investors are getting excited.
The Herzfeld Caribbean Basin Fund Inc., a closed-end fund known as (CUBA) that holds stocks poised to benefit from a normalization of U.S. relations with the island nation, surged 11% Monday, the most in almost two years. Less than an hour into the session 1.4 million shares of the fund had changed hands, compared with normal daily volume of about 22,000.
The news of Castro's death broke Friday, fueling speculation that relations between the former Soviet ally and the U.S. might continue to thaw under his brother, Raul Castro. President Barack Obama announced plans in December 2014 to chart a new course of policy toward Cuba, and he visited Havana in March of this year. The country has suffered under one-party socialist rule and a brutal economic embargo by the U.S. Read morehere.