Hedge Fund With 45% Returns Drawn Into DOJ Probe of Short Sales

Far off the hedge fund world’s usual map is a small firm in Toronto, filling out the second floor of a tidy brown office tower, just above a pizzeria.

From that perch, Anson Funds and its 41-year-old leader, Moez Kassam, have been posting returns that are multiples of the industry norm. It’s also punching above its weight in controversies. Reddit boards and websites have sprung up to question the propriety of how it bets on the ups and downs of stocks. So too have lawsuits.

And now, Anson has an unwelcome distinction in a U.S. Justice Department inquiry examining ...