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
Unexplained Pay Gaps Predict Employee Turnover
Key Metric
Correlation
Link Between Unexplained Pay and Turnover
The Research
Why do people quit? Often, it's not the low pay; it's the *unfair* pay. The Harvard study on pay disparity validated its "Unexplained Pay" metric by correlating it with employee turnover. Firms with high "Unexplained Pay Ratios" (where the CEO makes more than their performance justifies) experienced significantly higher rates of employee turnover and lower scores on "Best Places to Work" lists. This confirms that the "Fairness Gap" is a leading indicator of talent drain, which subsequently drags down financial performance.
Data Source:
Academic Source:
Key Finding
High unexplained pay disparity is a statistically significant predictor of future employee turnover.
The Archalos Thesis
We view turnover as a "Silent Liability." It doesn't appear on the balance sheet, but it drains cash flow through recruiting fees, training costs, and lost productivity. We scrutinize the "Unexplained Pay Gap" as a proxy for this risk. If a CEO is looting the company while employees are underpaid, we know the talent exit is coming. We sell before the employees leave.
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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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