SCHEDULE 13D/A: Thomas J. Herzfeld and Affiliates Increase Stake in Herzfeld Caribbean Basin Fund to Over 43%

Thomas J. Herzfeld and his advisory clients have increased their beneficial ownership in The Herzfeld Caribbean Basin Fund, Inc. to 43.07% through recent open market purchases.

Summary

• Thomas J. Herzfeld, along with his investment advisory accounts (Advisory Clients), collectively known as the Reporting Person, have filed an Amendment No. 26 to Schedule 13D.
• The Reporting Person now beneficially owns an aggregate of 6,870,148 shares of common stock in The Herzfeld Caribbean Basin Fund, Inc.
• This aggregate ownership represents 43.07% of the 15,720,897 shares outstanding as reported by the issuer as of March 18, 2025.
• Mr. Herzfeld individually holds sole voting and dispositive power over 1,566,549 shares.
• The Advisory Clients hold shared voting and/or dispositive power over 5,303,599 shares.
• Recent open market purchases include: on March 13, 2025, Mr. T. Herzfeld bought 1,252 shares at $2.641, and Advisory clients bought 73,343 shares at $2.61; on March 14, 2025, Mr. T. Herzfeld bought 987 shares at $2.64, and Advisory clients bought 6,396 shares at $2.633 and 77,429 shares at $2.64.
• No single owner of an Advisory Account holds more than 5% of the Issuer's common shares.

Sentiment

Score: 7

Explanation: The sentiment is moderately positive as a significant insider and related entities are increasing their stake, which can be interpreted as a vote of confidence in the company's value or future prospects.

Positives

• The Reporting Person, including Thomas J. Herzfeld, has increased their beneficial ownership, indicating continued confidence in The Herzfeld Caribbean Basin Fund, Inc.
• The aggregate beneficial ownership of 43.07% represents a significant controlling stake, potentially aligning interests between the large shareholder group and the company's performance.

Future Outlook

The document is a Schedule 13D amendment disclosing changes in beneficial ownership and does not contain forward-looking statements or guidance regarding the issuer's future performance or strategic outlook.

Industry Context

This filing reflects a significant increase in ownership by a key individual and related entities in a closed-end fund, which is common for fund managers who also invest in their own managed funds. It indicates a concentrated ownership structure, which can influence corporate governance and strategic direction.

Related Party Transactions

• Thomas J. Herzfeld, as portfolio manager of investment advisory accounts of his clients (Advisory Clients) of Thomas J. Herzfeld Advisors, Inc., has shared dispositive and/or voting power over shares held by these accounts. This constitutes a related party relationship where Mr. Herzfeld influences the investment decisions for his clients' holdings in the fund.

Stakeholder Impact

• Shareholders: The increased stake by Thomas J. Herzfeld and his advisory clients could be viewed positively, signaling strong conviction from a major insider. It also indicates a highly concentrated ownership structure, which could impact future corporate actions and governance.

Key Dates

Keywords

Schedule 13D, Beneficial Ownership, The Herzfeld Caribbean Basin Fund, Thomas J. Herzfeld, Investment Advisory, Common Stock, Open Market Purchases, Shareholder Stake, Fund Management