These were the best performing ASX 200 shares in March

These ASX 200 shares left the rest of the pack in their wake in March.

James Mickleboro

Author Bio James Mickleboro is an investment writer and analyst who has worked with The Motley Fool Australia for 10 years, covering ASX shares, market news, broker research, dividends, growth stocks, and long-term investing ideas. Over that time, James has written extensively about Australian equities and developed a particular focus on helping everyday investors understand the stories behind share price moves, company announcements, broker views, and broader market trends. His best investment recommendation was identifying Afterpay while it was still a small-cap growth share, before its rise into one of Australia’s biggest technology success stories. His worst investment lesson came from CSL Ltd (ASX: CSL), where he was burnt by believing management could turn the business around sooner than the market ultimately allowed. Areas of Expertise ASX shares Growth and dividend investing Broker research Interpreting company announcements Market news Portfolio strategy Long-term wealth creation Education Bachelor of Politics, Philosophy and Economics. CFA Institute Social Media LinkedIn Favorite Investment Quote "It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published April 1, 2023 9:00 am AEDT

The S&P/ASX 200 Index (ASX: XJO) was out of form in March. Due largely to weakness in the banking sector, the benchmark index fell 1.1% to 7,177.8 points.

But that couldn't stop some ASX 200 shares from delivering very strong returns last month.

For example, the four shares listed below were the strongest performers on the index over the period. Here's why they smashed the market:

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face. — Image source: Getty Images

Liontown Resources Ltd (ASX: LTR)

The Liontown share price was the best performer on the ASX 200 in March with a stunning gain of 89.7%. This was driven by news that the lithium developer received and rejected a non-binding takeover proposal from industry giant Albemarle. Management labelled the offer as "opportunistic." So, with Liontown's shares now trading beyond Albemarle's $2.50 per share offer, it seems that investors are betting on an improved proposal being made in the near future.

United Malt Group Ltd (ASX: UMG)

The United Malt share price was on form and raced 33% higher last month. This was also driven by a takeover approach. However, on this occasion, the maltster was receptive of the approach and revealed that it would accept the $5.00 per share offer from rival Malteries Soufflet if it became binding.

Capricorn Metals Ltd (ASX: CMM)

The Capricorn Metals share price was a strong performer and rose 25.6% last month. Investors were buying the gold miner's shares after the price of the precious metal surged to almost US$2,000 an ounce. This was driven by increased demand for safe haven assets due to the banking crisis and optimism that interest rates won't rise as much as previously expected.

InvoCare Limited (ASX: IVC)

The InvoCare share price wasn't far behind with a gain of 24.4% in March. This funerals company was another takeover target, receiving an unsolicited, preliminary, non-binding indicative offer from private equity giant TPG. It offered to acquire 100% of InvoCare's issued shares for $12.65 cash per share. However, the company's board was not biting and informed TPG that its offer "does not provide compelling value for InvoCare shareholders."

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