LOL I have one fugly little mare who is a great little riding pony, but is built like a potatoe on toothpicks.

Stormy is fun to ride, she's got a brave heart and kind eye...I love her and she will always have a home with me, but she will never pass her fugliness on.

Fugly can be a term of endearment or a derogatory comment, it all depends on the intent