Chart of the month: Akanthos Arbitrage

Savvy bets, including prescient positions in the debt of General Motors and Ford, boosted Akanthos in 2009.

Michael Kao’s $200 million Akanthos Arbitrage Fund had an exceptional year in 2009, gaining 263.13%, its highest annual gain since launching in 2002. The fund, based in Woodland Hills, Calif., has produced a net annualized return of 9.7%.

The fund rose 12% in December based on a savvy bet on the junior debt of Washington Mutual made after the bank had entered bankruptcy.

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