These were the best performing ASX 200 shares in July

Let's see why these shares smashed the market last month.

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The S&P/ASX 200 Index (ASX: XJO) was on form in July and charged 2.35% higher to finish at 8,742.8 points.

While this was great, some ASX 200 shares delivered even larger returns over the 31 days.

Let's see why these were the best performers on the benchmark index last month:

Mesoblast Ltd (ASX: MSB)

The Mesoblast share price was the best performer on the ASX 200 index in July with a gain of 43%. Investors were buying the allogeneic cellular medicines developer's shares following the release of its quarterly update. Mesoblast revealed strong sales for its Ryoncil product following its recent launch. Gross revenue from sales of Ryoncil post-launch on March 28 through to June 30 came in at US$13.2 million. Mesoblast's chief executive, Dr. Silviu Itescu, said: "We are pleased with the commercial launch activities of Ryoncil in the first quarter post-launch and look forward to updating on the current quarter's progress now that mandatory state CMS coverage has become effective as of July 1, and we complete onboarding of the remaining major U.S. transplant centers."

Iluka Resources Ltd (ASX: ILU)

The Iluka share price wasn't far behind with a 35.5% gain. Investors were buying the mineral sands and rare earths company's shares following news relating to MP Materials (NYSE: MP). In the middle of the month, the Pentagon made a significant investment in the rare earths producer, sparking a rally in prices. In addition, a bullish broker note out of Macquarie Group Ltd (ASX: MQG) is likely to have given its shares a boost.

Mineral Resources Ltd (ASX: MIN)

The Mineral Resources share price was on form and raced 33% higher over the month. Investors were bidding lithium shares higher last month on the belief that they (and lithium prices) may have bottomed.

Lynas Rare Earths Ltd (ASX: LYC)

The Lynas share price had a strong month and rose 22%. This was also largely due to optimism in the rare earths industry following the Pentagon's investment. In addition, Lynas released its quarterly update and reported gross sales revenue of $170.2 million. This was up strongly both quarter on quarter and year on year and driven by a significant increase in production.

Hub24 Ltd (ASX: HUB)

The Hub24 share price delivered for investors in July with a 20% gain. The catalyst for this was the investment platform provider's strong quarterly update. Hub24 reported Platform funds under administration (FUA) of $112.7 billion. This represents an increase of 10% over the quarter and 34% year on year. Management advised that this was driven by net inflows of $5.3 billion (up 7% on the prior corresponding period) and positive market movements of $4.9 billion.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Macquarie Group. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has recommended MP Materials. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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