Betting on a Cuban Thaw: Stocks Soar on Rumors of U.S. Relations With Cuba

Cuban cigars
Cuban cigars in Havana. Desmond Boylan/Reuters

(Reuters) - Shares of the Herzfeld Caribbean Basin Fund jumped by more than 20 percent on record volume on Wednesday morning following reports that the Obama administration was preparing to announce sweeping changes to U.S. policy about Cuba.

The fund, a closed-end mutual fund listed on Nasdaq under the ticker "CUBA," holds stocks and assets that fund manager Thomas Herzfeld believes would benefit from an eventual end to the U.S. economic embargo against Cuba.

In early trading, shares of the fund shot to as high as $8.61, their highest in nearly at year, from the previous day's close of $6.81, a two-month low. They last traded at $8.08.

Volume topped 3.65 million shares, by far a record amount of trading, compared with a daily average of around 11,000.