Investing in a Post-Fidel Cuba

For decades, corporate America has been hoping that Fidel Castro's departure would bring an end to the trade embargo, opening the country to U.S. investment.

Almost six months after the Cuban leader stepped aside, temporarily handing over the reins to his brother, there are no signs of a transition to democracy or a market economy. But a tiny closed-end mutual fund run out of Miami is already cashing in. The $14 million Herzfeld (CUBA Quote)Caribbean Basin Fund (CUBA) invests at least 80% of its assets in companies that derive substantial revenue from operations in the Caribbean region.

"We are invested in companies that are doing well now, that will continue to do well, and will get significant new business if the embargo is lifted," says Thomas J. Herzfeld, president and chairman of the fund's eponymous adviser. ...