The best equities to play Spain's recovery

Spain is still a risk-on play, but its restructured banking sector provide a good way to play the recovery, explains Mirabaud's Antonio Hormigos.

Playing the bear case As a manager of a pure Spanish equity fund, I could be expected to have had a structurally bullish view on the Spanish market. Nothing could be further from the truth. My fund has been playing the bear case and has been very defensively positioned for many years. Since the summer of 2007, which marked the early stages of the financial crisis, we expected that Spain would have been much harder hit. Its real estate bubble burst and produced a deep recession. Adjustment The adjustment process has been long and is still incomplete, but significant progress h...