Abstract. Recently, Dyachenko & Zakharov (2011) [9] have derived a compact form of the well known Zakharov integro-differential equation for the third order Hamiltonian dynamics of a potential flow of an incompressible, infinitely deep fluid with a free surface. Special traveling wave solutions of this compact equation are numerically constructed using the Petviashvili method. Their stability properties are also investigated. In particular, unstable traveling waves with wedge-type singularities, viz. peakons, are numerically discovered. To gain insights into the properties of these singular solutions, we also consider the academic case of a perturbed version of the compact equation, for which analytical peakons with exponential shape are derived. Finally, by means of an accurate Fouriertype spectral scheme it is found that smooth solitary waves appear to collide elastically, suggesting the integrability of the Zakharov equation.