Our Strategy:
Denmark Capital's Enduring
Innovation Strategy

1

Enduring innovators, mispriced

Most innovation is fleeting. Enduring innovation is rare — it sustains for decades through strong customer engagement across industries. We aim to back these enduring innovators when they fall into what we believe are core mispricing setups due to structural, behavioral, or analytical gaps.

There are many categories of human need that enduring innovators can serve:

Maslow's Hierarchy of Needs

Sources of product impact for human needs include:

Provides
hope

Provides
access

Supports
values

Wellness

Saves time
and effort

Provides
information

Promotes achievement
and motivation

Therapeutic
value

Promotes creativity and individualism

Connects people
and businesses

Fun and
entertainment

Reduces risk
or cost

Areas where we might find enduring innovation include:

Artificial
intelligence

Consumer-facing
software

Enterprise / knowledge
worker-facing software

Software developer
tools

Semiconductor
technology

Financial services
access

Healthcare products
and services

Medical
technology

Media and entertainment content creation, distribution, and consumption

Advertising technology and measurement

Consumer products
and retail

Energy and power
infrastructure

Computing devices and infrastructure

Auto, aerospace
and defense

Robotics

Delivery and
logistics

2

Surrounded by
process

Every investment passes through a proprietary framework and multiple “stops” to evaluate fundamentals, sizing, and risk.

We believe process elements designed to help quantify our qualitative views add focus and discipline to the portfolio construction process and provide a further check on decision-making consistency.

3

Structured to support an unconstrained approach

Our portfolio is built to let our best ideas matter with no artificial diversification or smoothing.

We are structured to hold positions in size when conviction, valuation, and risk align — in ways most public market investors structurally cannot.

Why We Invest:
The Structural Opportunity

We are structured to:

1

Embrace volatility

We are process-driven with risk management as the central focus but aim to take advantage of our portfolio construction flexibility and ability to embrace volatility with our leading ideas in an effort to be productive risk-takers.
2

Address common firm structure issues

Including decision-making, team, and time allocation considerations.
3

Avoid common firm alignment issues

Including firm size, fees, and client considerations.

Typical return capture for active managers:

Typical return capture for active managers