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.
Talent quality, turnover, and employee wellbeing
The Replacement Tax: Turnover Costs 2x Salary
Key Metric
2x Salary
Cost to Replace a Senior Employee
The Research
How much does it cost to lose a key player? While accounting standards ignore turnover costs, the economic reality is brutal. Research cited by AwardCo (drawing on Gallup data) indicates that the cost of replacing an individual employee can range from one-half to two times (2x) the employee's annual salary. These costs hide in plain sight: lost productivity, recruiting fees, onboarding time, and the 'knowledge gap' left behind. For a 100-person firm with an average salary of $50,000, high turnover can quietly bleed over $600,000 to $2.6 million annually from the bottom line.
Data Source:
Academic Source:
Key Finding
Replacing a senior employee costs up to 200% of their annual salary.
The Archalos Thesis
We audit 'Retention' as a capital allocation metric. If a CEO spent $2 million on a machine and then left it to rust, investors would revolt. Yet, many CEOs let $2 million worth of human capital walk out the door annually without scrutiny. We view retention strategies (like recognition and clear career paths) as 'Asset Maintenance.' Companies that minimize this 'Replacement Tax' have a structural margin advantage over their churn-and-burn competitors.
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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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