Activist investing is the process by which “an individual or group that purchases large numbers of a public company’s shares and/or tries to obtain seats on the company’s board with the goal of effecting a major change in the company (thanks Investopedia).”  In the latest activist trend, corporate boardroom diversity is taking center stage with many considering an increase in female and minority representation good for future business.

The latest trend (by latest I mean over the past 2 to 3 years), has been bolstered by recent allegations against many high profile and powerful men seemingly taking advantage of their position for, in some cases, decades.  In addition to legal misconduct, multiple studies have also backed the necessity of a diverse group to make better business decisions as business becomes more multicultural.

According to a 2016 Deloitte study, “women and minorities only account for 30.8 percent of the seats on Fortune 500 companies.”  While this number is increasing, many believe more can be done to grow the representation of underrepresented groups.

The simple truth is that many activist investors believe diversity is the future and investing for the long term will reap benefits over time.  I agree with this assumption and, if I had the money, would support it whole heartily.