Brown Capital Management Inc., a Baltimore-based investment firm, yesterday announced that it had received a five-year deal to manage $100 million of retirement funds for a California pension plan.

The 11-year-old company, which also is one of the nation's largest minority-owned investment firms, is managing the domestic equity growth portfolio for the California State Teacher's Retirement System (CALSTERS), according to Eddie C. Brown, president and founder.

"It's the largest initial funding we have had in our 11 years," said Mr. Brown, who is 53. The contract provides for CALSTERS to add to the portfolio if Brown meets its performance goals.

The company's second-biggest investment was from the California Public Employees Retirement System (CALPERS), which handed over $40 million to Brown Capital Management in 1991.

CALPERS added $75 million to that initial investment in 1993, and then added an additional $25 million in January, said Mr. Brown. With interest and appreciation, the CALPERS account now stands at $185 million.

The California teachers management contract, which actually was awarded in January, followed a competitive bidding process that started last July, according to Mr. Brown, and the money arrived in April. Out of about 75 bidders, Brown was chosen to be among the seven firms awarded some part of the retirement plan's funds.

The contract brings Brown's assets to more than $700 million under management. Other pension plan clients include the Los Angeles Fire and Police Retirement System, the Prince George's County Police and Fire Pension Plan and the Kmart Pension Plan.

Mr. Brown said his investment strategy -- "growth at a reasonable price" -- helped make him the best-performing domestic stock manager in CALPERS' entire $60 billion portfolio, for the first year-and-a-half of his contract (which started in January 1991).