IPH Ltd (ASX:IPH) shares drive strong performance in August for top fund manager

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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.

IPH Ltd shares don’t look cheap, but these 3 shares do…

Combining countless hours of research with over 30 years of hands-on stock market investing experience, The Capital Club’s founder Bruce Jackson has just published his definitive list of 3 Cheap and Good ASX Stocks for 2018.

IPH Ltd was not one of them, but the list does include one tiny gold mining stock, and the company one top fund manager calls the cheapest stock in the ASX 100.

Find out why these 3 Cheap and Good Stocks could be better buys than IPH Ltd. But you better hurry… these stocks may not stay cheap for long.

See the 3 stocks

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Contributors to this article may own shares in some of the companies mentioned in this article. The Capital Club has a thorough disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
Bruce Jackson has 30 years of hands on investing experience. He is passionate about stock market investing, running his own portfolio and SMSF. His focus is on small cap growth stocks. You can contact Bruce at brucej@thecapitalclub.com.au