Quick update. I sent a email off to Solidworks support and this was their response.
"We have an open enhancement SPR xxxxxx "Would like API to position or attach leader of an annotation". Our development team has looked at this in the past and the only way to set the annotation position is to re-set its attached entity using IAnnotation::SetAttachedEntities. Sorry if that isn't a good solution, but our developers determined that replicating the UI behavior through the API could not be done due to the inferencing mechanism needed."
So far I have been unsuccessfull at using the "IAnnotation::SetAttachedEntities" to do what I want. If anyone has some suggestions it would be appreciated.