Ordovezas Excel 53 Class boat, its new rudder giving it ample speed and maneuverability, took the 10-nautical mile windward-leeward course with a corrected time of one hour, 45 minutes and eight seconds.
It finished ahead of Fred Kinmonths Stella Minter Ellison and Neil Prydes Hi Fidelity, which was penalized after Karakoas crew protested the outcome of the second race.
Frank Pongs Jelik, which was first to the finish line in the China Sea Race is fourth.
Despite the penalty, Hi Fidelity is still ahead in the overall standings with six points under the low-score IRC handicapping system. Stella Minter Ellison and Karakoa runs second and third respectively with eight and 13 respectively.
Hi Fidelity actually took the top honors at the end of the 10-nautical mile windward-leeward second race.
But the five-man international jury headed by Masa Ishi found that Neil Prydes Welbourne 47 did not have the prescribed right-of-way of two boatlengths when it tried to overtake Karakoa around the last leeward buoy.
Judes Echauzs Standard Insurance Centennial is in fifth overall in this weeklong regatta jointly sponsored by Subic Bay Yacht Club and Manila Yacht Club.
John Wardills Australian Maid continued to dominate the IRC Cruising class after finishing ahead of Martin Tancos Challenge and Intrigue of Stornoway for the third straight time.
Karakoas performance more than made up for its absence on the first day of the regatta, which is sponsored by Smart Inifinity, Standard Insurance and Philippine Airlines. Also sponsoring are Absolute Distilled Water, Tanduay Rhum, Manila Bulletin, Ralphs Wine and Spirits and official radion station RJ 100 FM.
A broken rudder seven hours after they left port during the China Sea race forced them to quit the race to undergo repairs at the Royal Hong Kong Yacht Club marina.
They arrived at the scenic Zambales just moments before the second race was to start.