Values-based investing without compromise
At Archalos, we believe that good character, sound culture, and strong values are the foundation of a successful company and therefore are a strategic asset for investing. This means investors can invest in companies that support their values without conceding returns on that investment.
An innovative approach that goes beyond traditional methods
Most investors focus primarily on financial data, but at Archalos we understand picking a successful investment goes deeper. We’ve set out to identify those hard-to-see, intangible qualities of winning companies. We have developed a research-backed, innovative approach that measures those qualities by analyzing vast amounts of data.
Decades of experience identifying what makes a company succeed
With 50 years of combined investment experience, we’ve studied thousands of companies, managed capital across every market cycle, and seen what truly sets enduring businesses apart. Your hard-earned capital will be diligently invested by seasoned portfolio managers.
Internal labor markets and promotion from within
Human Capital Management Adds 35% to Shareholder Value
Key Metric
35% Value
Portion of Investment Decisions Driven by Non-Financials
The Research
Investors often claim they only care about "the numbers." Their behavior suggests otherwise. A study by the CIPD and Wharton School found that fund managers allocate approximately 35% of their investment decision weight to non-financial factors, specifically Human Capital Management (HCM) and leadership quality. Furthermore, firms that actively measure and report on the "Contribution of Human Capital" (e.g., revenue per employee, training ROI) tend to attract higher-quality long-term capital, reducing share price volatility.
Data Source:
Academic Source:
Key Finding
Non-financials like Human Capital account for ~35% of institutional investment decisions.
The Archalos Thesis
We view the workforce not as an expense line, but as an asset class. The market increasingly agrees, assigning a premium to firms that treat human capital as a measurable driver of value. We look for companies that report metrics like "Human Capital ROI" because it signals management understands that their people are the engine of free cash flow, not just a cost to be cut.
Read More Case Studies
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Operational discipline, continuous improvement, and pursuit of excellence
Internal Mobility
High internal mobility correlates with 20-30% better innovation and 15-20% higher revenue growth.
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Corporate culture, alignment, and ethics
Culture Premium
Strong cultures generate 4x revenue growth, 12x stock appreciation, and 700% net income growth.
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Governance quality
Crash Risk
Higher transparency in human capital metrics correlates with reduced stock price crash risk.
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Talent quality, turnover, and employee wellbeing
Engagement
Engagement is statistically linked to Customer Satisfaction (0.43), Innovation (0.43), and Profitability.
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Internal labor markets and promotion from within
Training ROI
Strong positive correlation (up to 0.66) between training investment and firm performance.
Strategic clarity, focus, and execution
Family Alpha
Family-owned firms generate a consistent ~3.7% annual excess return over peers.
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