Dan Watson PhD

Adjunct Professor in Management - Entrepreneurship

Dan is co-founder and chief investment officer for Capstone Asset Management Company. Capstone is headquartered in Houston with assets under management of $4.1 billion. In his capacity as CIO, Dan chairs the investment policy committee which is responsibl for setting the strategy for the company's investment products which cover a wide range of asset classes. His primary focus has been upon valuation of public and private companies; development and use of quantitative models for valuation, risk management, asset allocation and portfolio formation.

Dan also serves as Chair of the company's securities valuation committee which establishes the fair value of non-traded, illiquid securities in compliance with regulatory rules and accounting standards. These valuations have risen in importance following the financial meltdown of 2008 and subsequent changes in regulation and accounting standards. In response, Dan has led the firm's efforts to develop probability based valuation models to supplement the more standard techniques.

Dan has decades of experience presenting successfully to prospects and clients, managing portfolios and overall development key client relations.

Prior to co-founding Capstone, Dan was Chairman of Tenneco Financial Services a company formed to integrate and manage the assets of the parent company's newly acquired insurance companies and the Tenneco pension plan. Dan led the management buyout of Tenneco Financial following the sale of Tenneco's insurance operations.

Before assuming leadership of Tenneco Financial, Dan served for four years as assistant to the Chairman of the Board of Tenneco, Inc. In this capacity, he assisted the chairman in all of his responsibilities including acquisitions, divestitures, capital allocation, project review, and corporate strategy. He led the company's efforts in Washington, D.C. to secure desired changes in the Natural Gas Policy Act and related tax legislation.

He began his career at JP Morgan Chase (Texas Commerce Bank) as an analyst with research responsibilities for acquiring or creating banks for the parent holding company. He served as speech writer for senior management.

Dan received his Ph.D. in Economics (Financial Economics and Econometrics) from Rice University in 1977. His B.A. degree (magna cum laude) in economics and history is from Baylor University.

Dan is a member of the American Finance Association and the American Economic Association. He has served for a many years as an advisory board member of the M.A. Wright Fund which is managed by M.B.A. students at the Jones Graduate School of Business, Rice University.

His personal interests include behavioral finance, military history, decision theory, fly fishing, and photography.

Teaching Interests: 

-Security analysis