Could the "get woke go broke" meme be a leading indicator of performance in ESG funds?

Gonna try a thread on some disjointed thoughts. Sorry if it sucks!

thread 1/?

For context: I work at an ESG-related firm and think most of the ESG stuff is silly. I have had the fortune, as a young entrant to the market, to meet withd ozens of managers and asked their thoughts on ESG.

I think ESG investing is among the most exposed to the woke stuff.

DEI departments following @DrIbram's definition of "anti-racism", for example, give an aggrieved group (maybe rightfully so, but irrelevant for this thread) a trump card for hiring and firing decisions, and likely larger project/strategy work as well.

These are NOT uncommon views in the DEI departments that already exist across the country in all sorts of places. @realchrisrufo is doing some great work on these practices already in place.

You've also add another middle management group. These advocates will have teams and then managers. Like any other team, they will most likely seek to grow their group, and get more funding from C-level.

Quarters turn into years. You've created a bloated department, whose guidelines likely prohibit their abolition of defunding for the sake of "conflict of interest".

The passengers are at the helm of the Titanic. They don't care where the ship goes, so long as everyone gets a first class bedroom on the journey.

There is no top or bottom line incentive for race-based decision making. It seems odd that that's controversial in 2020.

I think one of the first place we'll start to see the cracks is with ESG managers. These ladies and gentlemen put 10-30% of a client's money in companies whose mission happens to align with @Twitter's views on climate change.

The rest of the money goes to FAANGs and S&P 500 crossovers that exist in ALL ESG funds, sometimes even with an emphasis on the ones who agree to fund the woke mobile! You know all know the ones! Right, @ShitFund? https://twitter.com/ShitFund/status/1297611087198785536?s=20

On top of all this, they charge reasonably high active management fees to make these non-decisions

Ultimately, I think these strategies-this "woke" logic given funding-eventually sees real price discovery in the markets, and it gets ugly. I think universities are similarly positioned.