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.
Big Idea #2
Values-Based investing needs a better approach - Defined by what we're for - not just what we're against
Faith-based and values-driven investors face an artificial constraint.
The investment options available to them follow a simple pattern: remove companies that clearly violate their principles, then invest in what remains without using financial analysis. The result is a portfolio that avoids the worst offenders but offers no actual analytical advantage.
This approach starts – and ends – with exclusion. It answers the question of what not to own, but never addresses what should be owned. Investors end up believing that aligning investments with values requires accepting mediocrity.
Archalos was built because we believe that the entire values-based framework is backwards.
Character traits aren't soft virtues.
They’re measurable drivers of durable outperformance. Strong character shapes how companies hire, innovate, serve customers, and make decisions when everything is on the line.
Strong character compounds.
Quietly at first, then decisively. We believe the qualities that define strong character in people also define strong performance in organizations.
Virtues are measurable attributes.
Not soft virtues that sound nice in annual reports. Archalos’ belief is that these virtues are measurable attributes that create durable competitive advantages and compound into superior returns over time.
Qualitative Factors
Our qualitative factors assess integrity, fairness, generosity, stewardship of resources, and excellence in execution.
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We evaluate how companies treat their workforce by looking at retention patterns, promotion from within practices, compensation structures from top to bottom, and investment in mentoring and development.
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We assess customer relationships by examining loyalty metrics and whether the business model creates genuine value or extracts it.
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We analyze supplier partnerships to understand whether the company builds mutually beneficial relationships or simply squeezes margins.
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We study management decision-making during difficult periods to see whether leaders maintain principle under pressure or abandon it for expedience.
These qualitative factors narrow our universe from 1,200 companies to roughly 150 to 200 candidates that demonstrate measurable character and sound corporate culture.
Big Idea #3
We believe that character and culture are the dominant drivers of long-term financial performance.
These advantages compound year after year, creating economic value that doesn't show up in financial statements until much later.
Productivity and innovation rise
because talented employees stay longer and work harder.
Customer loyalty strengthens
because relationships are built on trust rather than just price.
Supplier partnerships deepen
because fair treatment creates mutual benefit.
Think about what happens when organizations demonstrate integrity consistently.
Employees know that doing the right thing won't be punished when it conflicts with short-term metrics
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Lower employee turnover
Customers trust that they won't be exploited during negotiations.
Higher customer lifetime value
This is why we believe character drives financial performance.
Big Idea #4
Experience is a valuable edge.
People want to deal with experience. Between Sam Sweitzer and Mark Demos, the Archalos team brings over 50 years of institutional investment experience to your portfolio.
We have navigated every market cycle since the late 90s. This isn’t a strategy built on sentiment; it’s built on decades of evidence.
Proven Through Time and Discipline
Values-based investing doesn't require accepting lower returns. It requires complete analysis. When you measure the factors that actually determine long-term success, rather than just the metrics everyone else examines, we believe you gain an analytical edge that compounds over time.
The portfolio we've constructed through this process focuses on companies with enduring qualities, strong competitive positions, and leadership that makes disciplined decisions aligned with sound principles. These aren't the fastest-growing companies or the ones generating the most headlines. They're the ones built to last.
67
Number of securities
19.06%
% in top 10
7.79%
Return on assets
Dig Into The Research
Case Study
Research and Development Spending
Generating 7-8% Annual Excess Returns
Case Study
Customer Loyalty
Generating 518% Cumulative Returns vs. the S&P 500
Case Study
Leadership Character
The CEOs That Generated 5x Higher Return on Assets
Case Study
Employee Training and Mentorship
Generating 3x Higher Median Profits vs. Peers
Case Study
Corporate Culture & Economic Compounding
The Cultural Trait That Drove 756% Net Income Growth
Case Study
Employee Satisfaction
The Portfolio That Beat the Russell 1000 by 3.5x
The companies most worth owning aren't those with the most compelling growth stories or the most aggressive expansion plans.
They’re the ones led by people who maintain principle under pressure, treat stakeholders with dignity and fairness, allocate capital wisely, and build for decades rather than quarters.
Archalos represents years of research into what separates businesses that endure from those that fade. This isn't a strategy built on sentiment or hope. It's built on evidence that the qualities we teach our children about character, integrity, and long-term thinking apply just as powerfully to organizations and investments.
Through 50 years of experience we have gained unique insight into key areas of investing that few seem interested in.
We've distilled what's missing into four Big Ideas.
Big Idea #1
Most investors ignore the qualitative, cultural, and behavioral data (the 80%).
This isn't sentiment.
Archalos captures the 80% of data that is unstructured and we believe this data is the most overlooked analytical edge in public markets.
Financial data tells you what HAS happened.
The other 80% of the data tells you what WILL happen.
Academic research supports our claim.
Multiple studies demonstrate that companies with strong stakeholder relationships, long-term oriented leadership, and resilient cultures generate superior risk-adjusted returns across market cycles. The outperformance isn't marginal. It's material and consistent.
