UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F
FORM 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: MARCH 31, 1999
Check here if Amendment [ ]; Amendment Number:
This Amendment (Check only one.): [ ] is a restatement.
[ ] adds new holdings entries.
Institutional Investment Manager Filing this Report:
Name: Paragon Investment Management, Inc.
Address: 1420 Fifth Avenue
Suite 3020
Seattle, WA 98101
13F File Number: 801-39191
The institutional investment manager filing this report and the person by
whom it is signed hereby represent that the person signing the report is
authorized to submit it, that all information contained herein is true,
correct and complete, and that is understood that all required items,
statements, schedules, lists and tables, are considered integral parts of
this form.
Person signing this report on Behalf of Reporting Manager:
Name: Marjanne K. Masterman
Title: Vice-President
Phone: (206) 583-8300
Signature, Place, and Date of Signing:
Marjanne K. Masterman Seattle, WA May 7, 1999
Report Type (Check only one.):
[x] 13F HOLDINGS REPORT
[ ] 13F NOTICE
[ ] 13F COMBINATION REPORT
List of Other Managers Reporting for this Manager:
I AM SIGNING THIS REPORT AS REQUIRED BY THE SECURITIES EXCHANGE ACT OF 1934.
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FORM 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: 0
Form 13F Information Table Entry Total: 74
Form 13F Information Table Value Total: 262,936,000
List of other Included Managers:
No.
13F File Number
Name
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<TABLE>
FORM 13F INFORMATION TABLE
VALUE SHARES/ SH/ PUT/ INVSTMT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DSCRETN MANAGERS SOLE SHARED NONE
- ------------------------------ ---------------- --------- -------- -------- --- ---- ------- ------------ -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Amer Intl Group com 026874107 4588 38032 SH SOLE 38032
American Express ... com 025816109 4021 34150 SH SOLE 34150
Amgen Inc. com 031162100 15423 205988 SH SOLE 205988
Anheuser-Busch ..... com 035229103 1142 15000 SH SOLE 15000
Associates First Capital Corp com 046008108 240 5330 SH SOLE 5330
Bank of America Corp (n/c 4/99 com 060505104 1135 16067 SH SOLE 16067
Bank of New York Inc com 064057102 1657 46100 SH SOLE 46100
Berkshire Hathaway Inc Class com 084670108 214 3 SH SOLE 3
Biogen Inc com 090597105 3727 32600 SH SOLE 32600
Boeing ............. com 097023105 612 18000 SH SOLE 18000
Bristol-Myers Squibb Co. com 110122108 1234 19250 SH SOLE 19250
Chevron Corp. ...... com 166751107 301 3388 SH SOLE 3388
Chubb Corp com 171232101 234 4000 SH SOLE 4000
Ciena Corp com 171779101 2423 107700 SH SOLE 107700
Cisco Systems, Inc. com 17275R102 6353 57989 SH SOLE 57989
Citigroup Inc. (name chg 10/8 com 172967101 4540 71076 SH SOLE 71076
Coca Cola Co. ...... com 191216100 976 15900 SH SOLE 15900
Compaq Computer com 204493100 3026 95500 SH SOLE 95500
EMC Corporation ... com 268648102 8642 67650 SH SOLE 67650
Exxon Corp. ........ com 302290101 629 8916 SH SOLE 8916
Ford Motor Co....... com 345370100 510 9000 SH SOLE 9000
General Electric ... com 369604103 4593 41520 SH SOLE 41520
Genzyme Corp com 372917104 2991 59300 SH SOLE 59300
Guidant Corporation (spinoff f com 401698105 544 9000 SH SOLE 9000
Halliburton Co com 406216101 1700 44167 SH SOLE 44167
Home Depot com 437076102 3825 61450 SH SOLE 61450
I. B. M. ........... com 459200101 4833 27266 SH SOLE 27266
Intel Corp.......... com 458140100 5278 44400 SH SOLE 44400
Johnson & Johnson .. com 478160104 627 6709 SH SOLE 6709
Kimberly Clark Corp. com 494368103 3980 83017 SH SOLE 83017
Lilly (Eli) ........ com 532457108 3590 42300 SH SOLE 42300
MCI Worldcom Inc (name changed com 98155K102 248 2800 SH SOLE 2800
Macmillan Bloedel com 554783209 418 37200 SH SOLE 37200
Mattel Inc.......... com 577081102 296 11853 SH SOLE 11853
McKesson HBOC Inc. com 58155q103 1930 29250 SH SOLE 29250
Merck & Co. com 589331107 1570 19592 SH SOLE 19592
Merrill Lynch & Co com 590188108 3217 36350 SH SOLE 36350
Microsoft .......... com 594918104 9544 106488 SH SOLE 106488
Morgan St Dean Witter Discover com 24240V101 2848 28500 SH SOLE 28500
National City Corporation com 635405103 239 3600 SH SOLE 3600
Nike Inc Class B ... com 654106103 21494 372600 SH SOLE 372600
Paccar Inc. ........ com 693718108 580 14080 SH SOLE 14080
Pairgain Technology Inc. com 695934109 916 93950 SH SOLE 93950
Pfizer ............. com 717081103 4239 30550 SH SOLE 30550
Philip Morris ...... com 718154107 412 11700 SH SOLE 11700
Procter & Gamble ... com 742718109 610 6232 SH SOLE 6232
Quaker Oats Co...... com 747402105 373 6000 SH SOLE 6000
Reuters Group PLC - Spons ADR com 76132m102 271 3120 SH SOLE 3120
Safeco Corp. ....... com 786429100 776 19200 SH SOLE 19200
SmithKline Beecham PLC ADR rep com 832378301 286 4000 SH SOLE 4000
Starbucks Corporation com 855244109 5153 183634 SH SOLE 183634
State Street Corporation com 857477103 3102 37716 SH SOLE 37716
Telefonica de Espana com 879382208 261 2040 SH SOLE 2040
Tiffany & Company com 886547108 4225 56517 SH SOLE 56517
US Filter Corp com 911843209 3116 101734 SH SOLE 101734
Warner-Lambert Company com 934488107 258 3900 SH SOLE 3900
Weatherford Int'l (name & sym com 947074100 1999 76514 SH SOLE 76514
Weyerhaeuser Co..... com 962166104 403 7267 SH SOLE 7267
American Re Capital Pfd 8.50% prd 029162203 409 15900 SH SOLE 15900
Microsoft 2.196 Convertible Pr prd 594918203 611 6200 SH SOLE 6200
Alliance Mortgage Secs Income fdeq 018639104 89 10560.692SH SOLE 10560.692
D Witter Select Eqty Utility S fdeq 24241x262 27 26085.000SH SOLE 26085.000
Fidelity Advisor Short-Term Fi fdeq 315807503 101 10888.180SH SOLE 10888.180
Vanguard S&P 500 Index Fund fdeq 8296 69775.197SH SOLE 69775.197
Cyrk International Inc.(Rule14 3708 490273 SH SOLE 490273
IBM (Restricted Rule 145)Held 459200101 20036 113038 SH SOLE 113038
IBM (Unrestricted)Held at Schw 459200101 9913 55927 SH SOLE 55927
Janus Overseas Fund 471023846 267 12744 SH SOLE 12744
Nike Inc. Class A (convertible 23075 400000 SH SOLE 400000
Nike Inc. Class B 32633 565694 SH SOLE 565694
Northeast Investors Trust 664210101 146 13888 SH SOLE 13888
Pathways Group Inc 70321d106 292 22500 SH SOLE 22500
Presstek, Inc. (RESTRICTED LE 741113104 471 59764 SH SOLE 59764
Scripps Bank La Jolla Californ 811037100 486 31594 SH SOLE 31594
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