McCombs TODAY

Keith Brown, professor of finance at the McCombs School of Business, presented his research on the investment performance of mutual fund managers as part of the Faculty Research Series Sept. 22 at McCombs.

Brown and his research team found that while a mutual fund’s investment style (small cap vs. large cap and value vs. growth continuum) influences the returns it generates, little is known about how a manager’s execution of the style decision affects portfolio performance. Brown’s research shows that when mutual fund managers maintain a consistent investment style it leads to a higher risk-adjusted profitability.