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.
Strategic clarity, focus, and execution
The 90% Reality: Why Book Value is Dead
Key Metric
90% of Value
Percentage of S&P 500 Market Cap that is Intangible Assets
The Research
In 1975, tangible assets (factories, inventory, land) comprised 83% of the S&P 500's value. Today, the script has flipped. According to J.P. Morgan's *Guide to the Markets*, **90% of the S&P 500's market capitalization is now "Intangible Assets"** (IP, Brand, Data, Human Capital). This means traditional GAAP accounting, which excels at measuring factories but fails at measuring talent, is effectively blind to 90% of the value drivers in the modern economy.
Data Source:
Academic Source:
Key Finding
Intangible assets now comprise 90% of the S&P 500's total market value.
The Archalos Thesis
We believe "Book Value" is a relic. If 90% of a company's value is intangible, then the only way to assess its true worth is to audit its intangible drivers: Culture, Leadership, and Brand. We do not look for "cheap" stocks based on Price-to-Book; we look for "mispriced" stocks based on the quality of their intangible infrastructure. We are buying the 90%, not the 10%.
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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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