Big name fund managers believe in Spanish banks

Even though several months ago analysts warned against investing in Ibex 35 companies, top fund managers could see that the Spanish stock market would grow. And boy did it. The Ibex 35 has hit new historic highs as investors piled cash into Spanish banking stocks.

This was a smart decision considering that the banks are cleaning up their balance sheets, are solvent and are looking ahead to future growth potential.

The five biggest shareholders of Ibex 35 stocks have increased their asset allocations of Spanish banks -- particularly Santander and Popular by 2.7% and 1.6%, respectively. These moves reflect an increasing confidence in the Spanish financial sector and overall economy.