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FPA PARAMOUNT FUND, INC.
SUPPLEMENT DATED OCTOBER 15, 1999
TO PROSPECTUS DATED NOVEMBER 30, 1998
At the close of the fiscal year on September 30, 1999, the Fund's total net
assets were $171,219,988. Approximately 68% of the Fund's assets were
represented by six issuers in which more than 5% of the Fund's assets were
invested. 30% of the Fund's assets were invested in securities of three gold
mining companies, Homestake Mining Company, Newmont Mining Corporation, and
Placer Dome Inc. Shares of Polymer Group, Inc., a producer and marketer of
non-woven materials and other fabrics, constituted about 23% of the Fund's
assets. As discussed in the Prospectus, such relative concentration is likely to
increase the volatility of the Fund's net asset value per share and may increase
the risk of loss as well as potential for gain. Special considerations involved
in significant investments in gold mining companies are described in the
prospectus. Polymer Group, Inc. has reported that risk factors involved in
investing in its securities include significant leverage from outstanding debt
obligations, fluctuations in raw material prices, reliance on major customers,
intense competition in the company's markets, importance of continued
development of innovative products, dependence on key suppliers, risks of
acquisitions and possible failure to integrate acquired businesses, earnings
impacted by currency fluctuations because of significant operations in foreign
countries, and other matters.
