INVESTMENT TRUSTS: Cola Coup

Most investment trusts buy securities that they expect to pay dividends and increase in price, and then wait for their hopes to come true. Manhattan's Phoenix Securities Corp., run by a group of hard-headed businessmen (its chairman, bald Wallace Groves, is under indictment in a mail fraud case not connected with Phoenix), favors another technique. It often looks up an anemic corporation, gives it a financial blood transfusion and an infusion of hardheaded management and takes its fee in the form of options on shares that prove valuable if the treatment is a success.

In its last semiannual report (to...

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