The following principles cover the basics of our investment philosophy:

Fundamental Analysis

Our investment decisions are guided by a rigorous fundamental research procedure. We investigate every aspect of a company to insure that it meets our investment criteria.

In House Research

We invest client funds only after we have closely observed, inspected, and fully understand a company and its current situation. Continued success requires knowledge and certainty to withstand the volatility of the market. We place full confidence in our research and update it at regular intervals.

Experience

Our research associates all have management experience and the knowledge necessary to understand and fully assess the economic situation of a company.

Stability

Once a company has been fully analyzed and evaluated, we then invest and build positions for client portfolios.

Asset Concentration

The basic theory of most portfolio diversification entails spreading investments among many stocks. This approach is generally used in portfolio management as a strategy to reduce risk. Our approach is different. We believe that a structured and thorough research process reveals superior investment opportunities. Concentrating funds in well-researched companies significantly increases the probability of above average return.

Long Term Vision

In many cases, it takes time for a company to develop its value and for other market participants to appreciate it. A monthly and even quarterly return is seldom a good reflection of the long-term value of an investment. It may take several quarters for a company to produce the high growth results that will garner appreciation from the investment community.

Our Clients

Our clients are institutional investors and high net worth individuals who understand the equity markets and who are likely to have a portion of their assets already invested in stocks. They understand the risks and benefits involved in Small Cap stock market investments. Such individuals have experienced that portfolio management, if done in a disciplined and professional manner, requires time to produce results. With the level of assurance our approach offers, our clients readily agree to a minimum management period of twelve months.

We focus on understanding our clients’ goals and risk/reward characteristics. Each client receives a formal written agreement which orients them to the asset management procedure and to our administrative processes.

Fee Structure

A performance related fee of 20% and a general management fee of 1% are charged once a year to the client's account. The table below shows Duggan & Associate's ten year performance history vs. the common market indices.


 

Yearly

 

Cummulative

 

Yearly

Cummulative

Yearly

Cummulative

Yearly

Cummulative

 

Clients Gross

Clients Net

 

Clients Net

 

Dow

Dow

S&P 500

S&P 500

Russel

Russel

 

 

 

 

 

 

 

 

 

 

 

 

1990

19.27%

15.89%

 

15.89%

 

-6.28%

-6.28%

-8.19%

-8.19%

-22.21%

-22.21%

1991

74.11%

57.88%

 

82.97%

 

21.38%

13.76%

27.76%

17.30%

44.27%

12.23%

1992

8.32%

7.71%

 

97.08%

 

4.05%

18.36%

4.42%

22.48%

17.09%

31.41%

1993

19.70%

15.17%

 

126.97%

 

13.44%

34.27%

7.13%

31.21%

17.66%

54.61%

1994

-17.34%

-17.34%

 

87.61%

 

2.07%

37.05%

-1.32%

29.48%

-2.40%

50.90%

1995

29.18%

26.90%

 

138.08%

 

33.31%

82.70%

34.15%

73.70%

27.79%

92.84%

1996

25.31%

23.18%

 

193.28%

 

25.84%

129.91%

19.33%

107.28%

14.45%

120.70%

1997

10.19%

5.90%

 

210.59%

 

27.77%

193.76%

31.67%

172.92%

21.74%

168.69%

1998

55.90%

46.57%

 

355.22%

 

24.39%

265.41%

26.06%

244.04%

-3.33%

159.74%

1999

79.05%

61.34%

 

634.46%

 

25.18%

357.42%

15.33%

296.79%

19.81%

211.19%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average

30.37%

24.32%

 

 

 

17.12%

 

15.63%

 

13.49%

 

Std. Dev.

28.93%

23.46%

 

 

 

12.43%

 

13.87%

 

17.61%

 

Sharp Ratio

0.88

0.82

 

 

 

0.97

 

0.77

 

0.48