Anti-Woke Investment Firm Targets Starbucks Over DEI-Focused Hiring Practices

Azoria Partners, a new anti-woke investment firm, is launching an ETF aimed at excluding companies that prioritize diversity, equity, and inclusion (DEI) over financial performance. The fund, co-founded by James Fishback and Asaf Abramovich, will invest in all S&P 500 companies, excluding those with DEI hiring targets.

The firm's Meritocracy ETF, which will be available in 2025, will specifically exclude about three dozen companies from the S&P 500 that have implemented DEI hiring quotas. Among those to be excluded are Starbucks, Best Buy, Vanguard, and BlackRock. Azoria is reportedly finalizing a roughly $25 million venture round.

“We believe companies focused on race and gender-based hiring rather than skill and merit are pursuing value-destructive behavior," Fishback said this week in an interview with Fox News.

In a fiery op-ed for the New York Post, Fishback lambasted corporations that use DEI criteria in hiring decisions, claiming they are likely to underperform. "If you commit to hiring on race and gender and not merit, your stock will continue to underperform. Our ETF will call you out," he said. "Our goal is to offer investors a portfolio of companies that prioritize hiring the best and brightest, regardless of their appearance."

Fishback pointed to Starbucks as a key example. In 2020, the coffee giant announced a goal of achieving 30% racial and ethnic diversity in its workforce. "What does that have to do with making coffee at a profit in America?" Fishback remarked.

"You hire the best and brightest no matter what they look like." While the S&P 500 has surged nearly 100% over the last five years, Starbucks’ stock has only risen by 12%, which Fishback attributes to the company’s focus on DEI policies rather than talent and performance.

Fishback also urged Starbucks' new CEO, Brian Niccol, to reassess the company’s DEI strategy and return to a merit-based approach. "The espresso machines and the Wi-Fi aren't the issues. It’s the people at the core of the business," Fishback said.

Fishback, a supporter of President-elect Donald Trump, recently expounded on his vision for Azoria Partners during a luncheon at Mar-a-Lago. Ark Invest CEO Cathie Wood was among those who attended the gathering at the posh Palm Beach club.

Fishback made headlines this year when he sued his former employer, Greenlight Capital, alleging that the hedge fund run by David Einhorn hindered his fundraising efforts by misstating his role during a reference check.