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Arlington Management Employees, LLC
Michael H. Lustbader · Private Equity · Buyout
Arlington Management Employees, LLC, doing business as Arlington Capital Partners, is a Washington, D.C.-based private equity firm founded in 1999. The firm specializes in middle-market investment opportunities within four core sectors: aerospace and defense, government services and technology, healthcare, and business services and software. Arlington employs a thesis-driven approach, targeting companies in fragmented industries that are amenable to a buy-and-build strategy and demonstrate sustainable growth. The firm focuses on government-regulated or adjacent markets where it can leverage its extensive network and deep industry knowledge to drive value creation. By partnering with management teams, Arlington seeks to accelerate organic growth and execute strategic add-on acquisitions. As of late 2025, the firm has managed billions in committed capital across multiple investment funds, establishing itself as a leading player in the national security and regulated services landscape.
Simulated Performance
| Metric | Value |
|---|---|
| Total return | -53.8% |
| YTD return | -33.9% |
| Sharpe ratio | -5.58 |
| Win rate | 0% |
| AUM | $0.0B |
| Inception | Oct 1, 2025 |
| Updated | Sep 18, 2026 |
Institution Status
| Field | Value |
|---|---|
| AUM | $0.0B |
| Turnover | Low (<15%) |
| Avg holding | 18 Months |
| Inception | Oct 1, 2025 |
| Website | https://www.arlingtoncap.com |
Current Holdings
Updated on Sep 18, 2026.
| Ticker | Name | Portfolio % | Return |
|---|---|---|---|
| AVAV | AeroVironment Inc | 100.0% | -53.8% |
Recent activity
| Date | Action | Ticker | Weight |
|---|---|---|---|
| Oct 1, 2025 | BUY | AVAV | 0.0% → 100.0% |
Investment Style Analysis
Arlington Management Employees, LLC is widely recognized for employing a Buyout strategy. As of Sep 18, 2026, the firm oversees approximately $0.0B in assets under management (AUM). The portfolio demonstrates a clear preference for the Aerospace & Defense sectors, reflecting a high-conviction approach to capital allocation.
Recent Market Moves
During the latest rebalancing period ending Oct 1, Arlington Management Employees, LLC made a significant move by increasing exposure to AVAV. This adjustment aligns with the fund's dynamic approach to risk management and capital deployment in current market conditions.
Investment Philosophy
Arlington Capital Partners follows a thesis-driven investment philosophy focused on government-regulated and adjacent industries. The firm targets middle-market companies with 'Franchise Value,' which it defines as having high barriers to entry, deeply rooted customer relationships, and specialized processes or proprietary technology. Their strategy emphasizes a buy-and-build approach to consolidate fragmented sectors and create strategic scale. Arlington prioritizes investments in businesses that serve unwavering bi-partisan priorities, helping to insulate the portfolio from political shifts. By providing servant leadership and constructive collaboration, the firm works closely with management teams to identify add-on acquisitions, improve operations, and refine business models for long-term value creation.
Disclaimer
The content provided on this page, including the simulated portfolio performance, holdings analysis, and AI-generated insights, is for informational and educational purposes only. It does not constitute financial advice, investment recommendations, or an offer to buy or sell any securities. All data is derived from historical SEC 13F filings and other public disclosures, which have a reporting lag. The "Simulated Performance" is a hypothetical reconstruction based on past disclosures and does not represent the actual returns of the institution. Past performance is not indicative of future results. Tritonix.ai is not affiliated with Arlington Management Employees, LLC.
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Frequently asked questions
How is the simulated portfolio for Arlington Management Employees, LLC constructed?
This simulation is powered by Tritonix AI using official SEC filings. We focus on the "Best Ideas" by filtering for only the Top 20 largest holdings and rebalancing them to 100%. The simulation tracks performance starting from Oct 1, 2025. Our AI monitors for updates every Monday to capture major shifts. This concentrated approach highlights the manager's true stock-picking skill and mirrors their actual investment returns.
What is Arlington Management Employees, LLC's largest holding?
As of the latest filing, Arlington Management Employees, LLC's top position is AeroVironment Inc (AVAV), representing 100.0% of the portfolio. This reflects a high-conviction bet by the institution.
What is Arlington Management Employees, LLC's historical performance and risk profile?
Our simulation indicates a total return of -53.8%. Notably, the portfolio maintains a Sharpe Ratio of -5.58, suggesting an standard level of risk-adjusted returns compared to the broader market.
What sectors does Arlington Management Employees, LLC primarily invest in?
Arlington Management Employees, LLC has a strong preference for the Aerospace & Defense sector, which makes up 100.0% of their disclosed assets. The portfolio also has exposure to other industries, indicating a specific thematic focus.
Is Arlington Management Employees, LLC's portfolio concentrated or diversified?
Arlington Management Employees, LLC runs a highly concentrated portfolio with 1 disclosed positions. The top 3 holdings alone account for 100.0% of the total portfolio weight, suggesting a strategy that favors deep research into a few key names.
How has Arlington Management Employees, LLC performed in 2026?
Our AI-simulated model portfolio for Arlington Management Employees, LLC tracks a Year-to-Date (YTD) return of -33.9%. This metric helps investors gauge the institution's effectiveness in the current market environment.
Does Michael H. Lustbader manage Arlington Management Employees, LLC directly?
Yes, Michael H. Lustbader serves as the key portfolio manager for Arlington Management Employees, LLC, overseeing the investment strategy and final capital allocation decisions.