The IPH Ltd (ASX:IPH) share price has gained over 30 per cent over the past 12 months, making it one of the better performing ASX 200 shares in that period.
In August, the intellectual property company said that although profits were flat on the prior year, it had delivered a strong second half performance, while continuing to implement its strategy to enhance its competitive platform for future growth.
At just above $6, IPH shares are trading at a 52-week high.
Writing in its August 2018 monthly update, the top performing MHOR Australian Small Cap Fund said the IPH share price rose as investors regained confidence in the company’s ability to grow earnings following a recent history of weaker results.
The fund said organic growth rates normalised and IPH benefitted from a weaker Aussie dollar.
IPH is a leveraged offshore earner, meaning it has more revenue exposure in US dollars on an Australian dollar cost base. Further, the fund said Aussie dollar AUD weakness turns prior currency earnings headwinds to tailwinds, crystallising 12 per cent FY19 EBITDA upgrades to consensus forecasts.
The strong performance of IPH shares were one of the drivers of the 3.43 per cent return in August for the MHOR Australian Small Cap Fund. Since inception in August 2016, the fund has gained almost 30 per cent, out-performing the return of its benchmark S&P ASX Small Ordinaries Index.