SCHEDULE: Herzfeld Group Reduces Stake in Credit Income Fund

Thomas J. Herzfeld and affiliated entities have reduced their beneficial ownership in Herzfeld Credit Income Fund, Inc. to 45.37% through recent open market sales.

Summary

• Thomas J. Herzfeld, et al., reported beneficial ownership of 7,287,788 shares of Herzfeld Credit Income Fund, Inc. common stock.
• This aggregate amount represents 45.37% of the 16,063,219 shares outstanding as of December 18, 2025.
• The reporting person holds sole voting and dispositive power over 1,542,799 shares.
• Shared voting and dispositive power is held over 5,744,989 shares through various accounts.
• Advisory clients, associated with the reporting person, conducted open market sales of common stock on multiple dates in December 2025.
• Sales included 8,353 shares at $2.5482 on December 11, 2025; 10,061 shares at $2.5564 on December 12, 2025; 16,679 shares at $2.5709 on December 15, 2025; 2,818 shares at $2.5732 on December 16, 2025; 4,260 shares at $2.58 on December 17, 2025; and 111,355 shares at $2.61 on December 18, 2025.

Sentiment

Score: 4

Explanation: The sentiment is slightly negative due to the reported open market sales by a significant beneficial owner and affiliated advisory clients, which can be perceived as a lack of conviction or a strategic divestment.

Negatives

• A significant beneficial owner, Thomas J. Herzfeld and his advisory clients, reduced their stake in the company through open market sales.
• The reduction in ownership by a major holder could signal a decrease in confidence or a strategic shift, potentially impacting investor sentiment.

Risks

• The reduction in beneficial ownership by a significant holder may lead to decreased investor confidence in the company's future prospects.
• Increased selling pressure from a large shareholder group could negatively impact the stock price.

Future Outlook

The filing does not contain any explicit forward-looking statements or guidance regarding the issuer's future performance or strategic direction.

Management Comments

• Thomas J. Herzfeld, Chairman, certified the information set forth in the statement as true, complete, and correct to the best of his knowledge and belief.

Industry Context

This filing, a Schedule 13D amendment, primarily concerns changes in beneficial ownership by a significant holder. It does not provide direct insights into broader industry trends for credit income funds or comparisons with competitors, beyond the implication that a major investor is reducing their stake.

Related Party Transactions

• Advisory clients, associated with the reporting person Thomas J. Herzfeld, conducted open market sales of the issuer's common stock. While not explicitly labeled as 'related party transactions' in the filing, these are transactions by entities closely affiliated with the beneficial owner.

Stakeholder Impact

• Shareholders: May experience decreased confidence and potential downward pressure on share price due to the significant holder's sales.
• Management: May face questions regarding the reasons for the sales by a key affiliated investor.

Key Dates

Recommendation

While the filing reports significant sales by a major beneficial owner, which is generally a negative signal, a Schedule 13D amendment alone does not provide sufficient fundamental information to issue a 'sell' recommendation. Investors should 'hold' and monitor for further developments, including any additional disclosures or changes in the company's operational or financial performance, to fully assess the implications of this reduction in ownership.

Keywords

Herzfeld Credit Income Fund, Thomas J. Herzfeld, Schedule 13D, Beneficial Ownership, Common Stock, Insider Sales, Investment Fund, Credit Income