UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F
FORM 13F COVER PAGE
Report for the Calendar Year or Quarter Ended: JUNE 30, 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 AUGUST 10,1999
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.
<PAGE>
FORM 13F SUMMARY PAGE
Report Summary:
Number of Other Included Managers: 0
Form 13F Information Table Entry Total: 71
Form 13F Information Table Value Total: 178,630,000
List of other Included Managers:
No.
13F File Number
Name
<PAGE>
<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 4135 35264 SH SOLE
35264
American Express ... com 025816109 4151 31900 SH SOLE
31900
Amgen Inc. com 031162100 12473 204888 SH SOLE
204888
Anheuser-Busch ..... com 035229103 922 13000 SH SOLE
13000
Associates First Capital Corp com 046008108 235 5330 SH SOLE
5330
Bank of America Corp (n/c 4/99 com 060505104 1178 16067 SH SOLE
16067
Bank of New York Inc com 064057102 1541 42000 SH SOLE
42000
Biogen Inc com 090597105 4502 70000 SH SOLE
70000
Black & Decker Corp com 091797100 4308 68250 SH SOLE
68250
Boeing ............. com 097023105 770 17500 SH SOLE
17500
Bristol-Myers Squibb Co. com 110122108 1285 18250 SH SOLE
18250
Chevron Corp. ...... com 166751107 322 3388 SH SOLE
3388
Chubb Corp com 171232101 278 4000 SH SOLE
4000
Ciena Corp com 171779101 3076 101900 SH SOLE
101900
Cisco Systems, Inc. com 17275R102 4010 62228 SH SOLE
62228
Citigroup Inc. (name chg 10/8 com 172967101 4202 88464 SH SOLE
88464
Coca Cola Co. ...... com 191216100 986 15900 SH SOLE
15900
DuPont E I DeNemours & Co com 263534109 205 3000 SH SOLE
3000
EMC Corporation ... com 268648102 6572 119500 SH SOLE
119500
Exxon Corp. ........ com 302290101 665 8616 SH SOLE
8616
Ford Motor Co....... com 345370100 508 9000 SH SOLE
9000
General Electric ... com 369604103 4573 40470 SH SOLE
40470
Genzyme Corp com 372917104 3686 76000 SH SOLE
76000
Guidant Corporation (spinoff f com 401698105 409 8000 SH SOLE
8000
Halliburton Co com 406216101 1999 44167 SH SOLE
44167
Hewlett-Packard .... com 428236103 241 2400 SH SOLE
2400
Home Depot com 437076102 3915 60750 SH SOLE
60750
I. B. M. ........... com 459200101 6053 46832 SH SOLE
46832
Intel Corp.......... com 458140100 5385 90500 SH SOLE
90500
Johnson & Johnson .. com 478160104 635 6476 SH SOLE
6476
Kimberly Clark Corp. com 494368103 4712 82667 SH SOLE
82667
Lilly (Eli) ........ com 532457108 3359 46900 SH SOLE
46900
Lucent Technologies Inc com 549463107 240 3564 SH SOLE
3564
MCI Worldcom Inc (name changed com 98155K102 241 2800 SH SOLE
2800
MacMillan Bloedel Limited com 554783209 670 37200 SH SOLE
37200
Mattel Inc com 577081102 284 10853 SH SOLE
10853
Maytag ............. com 578592107 2524 36150 SH SOLE
36150
McKesson HBOC Inc. com 58155q103 2390 74250 SH SOLE
74250
Merck & Co. com 589331107 1442 19592 SH SOLE
19592
Merrill Lynch & Co com 590188108 2989 37600 SH SOLE
37600
Microsoft .......... com 594918104 9000 99797 SH SOLE
99797
Morgan St Dean Witter Discover com 24240V101 2884 28100 SH SOLE
28100
National City Corporation com 635405103 236 3600 SH SOLE
3600
Nike Inc Class B ... com 654106103 22828 360200 SH SOLE
360200
Paccar Inc. ........ com 693718108 725 13580 SH SOLE
13580
Pairgain Technology Inc. com 695934109 655 56950 SH SOLE
56950
Pfizer ............. com 717081103 3281 30100 SH SOLE
30100
Philip Morris ...... com 718154107 470 11700 SH SOLE
11700
Procter & Gamble ... com 742718109 556 6232 SH SOLE
6232
Quaker Oats Co...... com 747402105 365 5500 SH SOLE
5500
Rayovac Corporation com 755081106 1270 56000 SH SOLE
56000
Reuters Group PLC - Spons ADR com 76132m102 253 3120 SH SOLE
3120
S&P Mid-Cap 400 Depository Rec com 595635103 4828 61550 SH SOLE
61550
Safeco Corp. ....... com 786429100 825 18700 SH SOLE
18700
SmithKline Beecham PLC ADR rep com 832378301 264 4000 SH SOLE
4000
Starbucks Corporation com 855244109 5418 144234 SH SOLE
144234
State Street Corporation com 857477103 3519 41216 SH SOLE
41216
Telefonica de Espana com 879382208 306 2081 SH SOLE
2081
Tiffany & Company com 886547108 4402 45617 SH SOLE
45617
Weatherford Int'l (name & sym com 947074100 2732 74594 SH SOLE
74594
Weyerhaeuser Co..... com 962166104 431 6267 SH SOLE
6267
American Re Capital Pfd 8.50% prd 029162203 354 13900 SH SOLE
13900
Microsoft 2.196 Convertible Pr prd 594918203 620 6200 SH SOLE
6200
Alliance Mortgage Secs Income fdeq 018639104 87 10560.692SH SOLE
10560.692
D Witter Select Eqty Utility S fdeq 24241x262 29 26085.000SH SOLE
26085.000
Fidelity Advisor Equity Growth fdeq 315805200 272 4222.809 SH SOLE
4222.809
Fidelity Advisor Growth Oppty fdeq 325 6076.230 SH SOLE
6076.230
Fidelity Advisor High Yld Port fdeq 479 40927.366SH SOLE
40927.366
Fidelity Advisor Short-Term Fi fdeq 315807503 101 10991.029SH SOLE
10991.029
Fidelity Advisors Overseas Fun fdeq 315918102 197 10391.183SH SOLE
10391.183
Vanguard S&P 500 Index Fund fdeq 8850 69775.197SH SOLE
69775.197
</TABLE>
