The brass at Paradigm Capital Management are likely feeling pretty smart today, after boasting a cool 53 percent minimum return on an investment in Orthovita Inc. (NSDQ: VITA), which soared after the announcement of a $316 million buyout by Stryker Corp. (NYSE: SYK).

The Albany, N.Y.-based fund revealed a significant stake in the Malvern, Pa.-based orthopedic biologics maker Feb. 14, according to regulatory filings.

The St. Valentine’s day revelation showed the fund was sweet on Orthovita to the tune of 5.5 million shares, which had a book value of just under $13.75 million given VITA’s share price of $2.51 that day. In total, Paradigm owns 7.1 percent of Orthovita through its Paradigm Funds Advisor LLC fund, which has a little over $2 billion under management.

Paradigm actually acquired the stock sometime during the fourth quarter of 2010, according to its regulatory filings, which valued the VITA stake at around $11 million. Shares of Orthovita have fluctuated from around $1.96 per share in December to a high-water mark of $2.73 per share as of the close of business May 13, meaning the profit for the fund could exceed $10 million.

Orthovita officials announced a deal yesterday in which Stryker will pay $3.85 per share, representing a 41 percent premium on VITA’s closing price of $2.73 per share May 13. The all-cash deal is expected to close during the second quarter.

The purchase price bumped the value of Paradigm’s piece of Orthovita to $21.1 million.

VITA shares were trading at $3.83 in late-day activity today.