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Keith Brown - The University of Texas at Austin, McCombs School of Business. Austin, TX, US

Keith Brown Keith Brown

Professor, Department of Finance | The University of Texas at Austin, McCombs School of Business


Specializing in teaching Investments, Portfolio Management and Security Analysis, Capital Markets and Derivatives.


Areas of Expertise (5)

Portfolio Management Security Valuation and Analysis Endowment Funds Corporate Governance and Incentives Financial Regulation


Keith Brown holds the positions of University Distinguished Teaching Professor and Fayez Sarofim Fellow at the McCombs School of Business at the University of Texas at Austin, where he specializes in teaching Investments, Portfolio Management and Security Analysis, Capital Markets, and Derivatives courses at the BBA and MBA levels. He is also a member of the University’s Academy of Distinguished Teachers. For eleven years, he served as President and Chief Executive Officer of The MBA Investment Fund LLC, a private complex of equity and fixed-income portfolios managed by graduate students at the University of Texas and also was the Director of the Department of Finance’s Hicks, Muse, Tate & Furst Center for Private Equity Finance.

Before joining The University of Texas a professor, Brown taught at San Diego State University and Purdue University.



Keith Brown Publication Keith Brown Publication Keith Brown Publication



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Staying the Course: The Role of Investment Style Consistency in the Performance of Mutual Funds Staying the Course: The Role of Investment Style Consistency in the Performance of Mutual Funds


Education (4)

Institute of Chartered Financial Analysts: CFA., Financial Analysis 1988

Purdue University: Ph.D., Financial Economics 1981

Purdue University: M.Sc., Economics 1978

San Diego State University: B.A., Economics 1977

Articles (7)

Market Risk, Mortality Risk, and Sustainable Retirement Asset Allocation: A Downside Risk Perspective. Journal of Investment Management


This study analyzes the allocation question through a focus on the downside risks created by the joint uncertainty over investment returns and life expectancy. Using a new analytical approach, we show that focusing on the severity of retirement funding shortfalls (downside risk), rather than just the probability of ruin, increases the sustainability of a retirement portfolio. We conclude that the higher equity allocations commonly employed in practice significantly underestimate the risks that these higher-volatility portfolios pose to the sustainability of retirees’ savings and incomes.

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Opaque Financial Contracting and Toxic Term Sheets in Venture Capital Journal of Applied Corporate Finance


Using a numerical analysis of a representative term sheet, the authors discuss the process of financial contracting for early‐stage companies, providing examples of how negotiations can go wrong and showing exactly when and where the agreed‐upon conditions start to turn toxic for some of the stakeholders.

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In Search of Unicorns: Private IPOs and the Changing Markets for Private Equity Investments and Corporate Control Journal of Applied Corporate Finance


Our goal in this study is to examine the development
and economic consequences of the recent capital market
movement toward the growing use of Private IPO (PIPO) financing.

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Do Endowment Funds Select the Optimal Mix of Active and Passive Risks Journal of Investment Management


In this paper, we investigate whether managers select the appropriate
combination of active and passive allocations in their portfolios. Noting that this issue is ultimately a risk management question, we adapt a simple framework for establishing what constitutes the optimal level of active and passive risk exposures.

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Asset Allocation and Portfolio Performance: Evidence From University Endowment Funds Journal of Financial Market


We use university endowment funds to study the relationship between asset allocation decisions and performance in multiple asset class portfolios. Contrary to both theory and prevailing beliefs, asset allocation is not related to portfolio returns in the cross-section but does indirectly influence performance.

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The Right Answer to the Wrong Question: Identifying Superior Active Portfolio Management Journal of Investment Management


The debate over the value of active portfolio management has often centered on whether the average active manager is capable of producing returns that exceed expectations. We argue that a more useful way to frame this issue is to focus on identifying those managers who are the most likely to generate superior risk-adjusted returns (i.e., alpha) in the

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Governance, Incentives, and Industry Consolidations Review of Financial Studies


This paper studies the determinants of the success of these industry consolidations using a unique sample of firms that were created at the time of their initial public offering: rollup-up IPOs.

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