Azoria Partners, an emerging investment firm with a focus on anti-woke principles, is preparing to launch an exchange-traded fund (ETF) titled the Meritocracy ETF. This fund aims to exclude companies that emphasize diversity, equity, and inclusion (DEI) initiatives in their hiring practices, positing that such focuses detract from financial performance. Co-founded by James Fishback and Asaf Abramovich, the fund plans to invest exclusively in S&P 500 companies, intentionally leaving out those with DEI hiring targets. Some of the notable companies to be excluded include Starbucks, Best Buy, Vanguard, and BlackRock. With financial backing nearing $25 million, the firm’s strategies are grounded in a belief that prioritizing race and gender over merit leads to diminished value for investors.
Fishback, in interviews and public statements, has been vocal about his commitment to merit-based hiring, expressing concerns that companies adhering to DEI policies may face significant underperformance in the market. During a recent interview with Fox News, he underscored the importance of skill and merit in hiring, arguing that companies could severely damage their prospects by channeling efforts toward meeting DEI quotas instead. He cited data indicating the S&P 500’s nearly 100% growth over the past five years contrasted with Starbucks’ mere 12% increase as evidence that DEI commitments can hinder operational success. Fishback’s critique of Starbucks exemplifies his broader argument against DEI hiring practices, highlighting his belief that focusing on qualifications rather than identity is crucial for company success.
In a pointed op-ed for the New York Post, Fishback elaborated on his stance, asserting that companies implementing DEI hiring criteria might be setting themselves up for continued underperformance. He characterized the approach of prioritizing race and gender over merit as not just flawed but potentially damaging, indicating a strategic misalignment that affects stock performance. Fishback’s assertion provides a warning to investors regarding emerging trends in corporate hiring processes and their correlation with financial results. He emphasized that the goal of his ETF is to curate a portfolio of companies aligned with meritocratic principles, enabling investors to engage with businesses committed to achieving excellence irrespective of outward appearances.
One of Fishback’s key contentions revolves around the case of Starbucks, which has made concerted efforts to enhance its workforce diversity by imposing specific racial and ethnic goals. Fishback questions the relevance of such initiatives to the core business of making coffee, arguing that profitability should be the primary concern. His emphasis on hiring the “best and brightest” aligns with his vision of a meritocratic investment strategy. By holding companies accountable for their DEI policies, Fishback frames the Meritocracy ETF as a corrective tool intended to steer corporate practices back toward merit-based evaluations and hiring.
Moreover, Fishback has engaged directly with Starbucks’ leadership to encourage a reevaluation of its DEI strategies. In communications with the company’s new CEO, Brian Niccol, he has implored leadership to reconsider the company’s commitments to DEI targets, expressing the belief that the issues affecting the corporation are fundamentally rooted in personnel choices rather than operational logistics. He posits that immediate shifts back toward merit-focused hiring policies could reinvigorate both company morale and stock performance, providing a swift course correction to those businesses found to be prioritizing DEI metrics over talent and performance.
Beyond his investment initiatives, Fishback has garnered attention for legal actions against his previous employer, alleging interference in his professional endeavors. This backdrop illustrates a complex personal narrative entwined with his professional ambitions, which include a commitment to altering corporate landscapes. By aligning with key political figures and leveraging platforms like Mar-a-Lago to discuss his vision, Fishback aims to gain traction for Azoria Partners and its mission. Ultimately, the Meritocracy ETF reflects an ideological battle over business ethics and practices, highlighting a significant divide in contemporary discussions around corporate responsibility, hiring practices, and the overarching purpose of a corporation in society.
