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.
Corporate culture, strength, cohesion, alignment, and ethics
Values-Based Screening Outperforms by 2.6% Annually
Key Metric
2.6% Alpha
Annualized Outperformance of Values-Screened Portfolios
The Research
Can you beat the market by filtering out 'bad actors'? Data from Stewardship Partners and the Biblically Responsible Investing Institute (BRII) suggests yes. In a long-term backtest (spanning nearly 20 years), a portfolio constructed by screening out companies with significant ethical violations (human rights abuses, pornography, abortifacients) did not just match the benchmark—it beat it. The screened portfolio delivered an annualized return approximately **260 basis points (2.6%)** higher than the broad market (S&P 500), with lower volatility.
Data Source:
Academic Source:
Key Finding
Values-screened portfolios generated ~2.6% annualized alpha over a 20-year horizon.
The Archalos Thesis
We view ethical screening as a form of 'Tail Risk Hedging.' Companies that engage in ethically dubious activities (fraud, exploitation, vice) carry a hidden 'Moral Liability' on their balance sheet. This liability often explodes in the form of lawsuits, regulation, or consumer boycotts. By screening these out, we aren't just being 'good'; we are systematically removing the left-tail crash risk from the portfolio, which mathematically lifts the long-term average return.
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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