Donoghues Diversified Global Sector Fund Portfolio Joins Nelson's Top 5 World's Best Money Managers" 12/31/01 Edition For Past 12 And 20 Quarters Performance

Proactive sector fund investing propels registered investment advisor to top five World's Best Money Managers in Nelson's international

Seattle WA/ 02/28/02
   W. E. Donoghue & Co. Inc.s Diversified Global Sector Fund Portfolio (DGSF) performance placed #5 and #4 for the past 12 and 20 quarters to 12/31/01, respectively, in Nelson Informations World's Best Money Managers among International Balanced/Multi-Asset Portfolios. To view Nelsons performance rankings online, please visit Nelsons website at http://www.nelsoninformation.com/wbmm/login.asp. After a quick registration, you can search of Donoghue" using their search page.
   For the past three and five years to 12/31/01, respectively, Donoghues DGSF Portfolio has earned average annualized returns of 16.94%* and 16.90%*. The largest S&P 500 benchmark index fund in America posted an average annual gain of 10.16% and an average annual loss of 1.05% for the same periods.
For the period 1/1/96-12/31/01, Donoghues DGSF Portfolio exhibited a standard deviation of 35.4% and a beta of 0.71 and a Sharpe ratio or return per unit of risk 0.43. For comparison, none of the top ten largest lo- or no-load mutual funds has a Sharpe ratio greater than 0.08 and eight of the ten posted negative Sharpe ratios.
Donoghues DGSF Portfolio is a proactively-managed four-fund global portfolio chosen from Fidelitys single-industry domestic, single-country and regional international equity, bond and money market mutual funds. DGSF Portfolio holdings are chosen based on recent profit momentum and reviewed weekly. DGSF Portfolio is an aggressive investment and contains higher than market risk (standard deviation). The average holding period for individual fund positions is approximately two months, thus these accounts are most appropriate for tax-deferred accounts such as IRA Rollovers.
*Donoghues DGSF Portfolio performance statistics are audited returns net of Fidelitys 3.0% one-time sales charge, all transaction costs and WEDCOs average annual management fee. Individual client returns have varied. Past performance is, of course, no guarantee of future returns.
W. E. Donoghue & Co., Inc. is a registered investment advisor registered in all 50 states with about $85 million in managed portfolios of mutual funds serving individuals, trusts and institutional investors since 1986.

FOR INVESTORS: For more information, email us at wedco@donoghue.com, call us at 1-800-642-4276 or visit our website www.donoghue.com.

FOR NEWS MEDIA: For more information visit the Press Room at www.donoghue.com, contact Mr. Donoghue in Seattle WA at 206-281-8188 or by e-mail at guru@donoghue.com.