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Warren Buffett was one of the first to vocally express just how much opportunity lies in Japan following the devastating earthquake which was followed up by a dead tsunami. What does this mean for investors with much less than Buffett’s billions to invest in business that will profit in one of the largest Asian economies? It means investing in mutual funds of course.

Of course, there are several factors to consider when chasing opportunity the way professional, billionaire investors do. The first is how much risk are we willing to expose to such areas — Japan and the Pacific Rim have been fairly volatile investments for some time. The MSCI EAFE has been an interest index all its own.

Finding the right place to trust your assets is a little easier with Specialty Mutual Funds like the Matthews Asia Pacific Fund (MPACX). As the chart below shows, this fund has outperformed even the S&P 500 since January 1, 2009. By a wide margin.

The Matthews Asia Pacific Fund is one of the few non-US mutual funds we watch at the Mutual Fund Site and we believe that it is one of the best investments an investor can make when they have Japan on their radar. With roughly 1/3 of the fund’s assets invested in Japan according to the latest data at Morningstar.com, an economic recovery in that region will have a direct impact on the fund’s returns.

Remember, there is still quite a bit of risk associated with Japanese investments. The country continues to battle a potential nuclear problem that could kill quite a lot of livestock and vegetation, not to mention the potential for an impact on Tokyo which is roughly just 110 miles away.

What we like most about Matthews’s management of this fund is its investment style, which leans heavily on Large Cap Growth equities. This consistent style is something we applaud because it shows just how well the management team (in place since 2007) knows the businesses and stocks it purchases. We would go so far as to suggest that this knowledge and commitment of those assets has helped the fund outperform the MSCI EAFE on a YTD basis and rank 3rd among its peer group (as determined by Morningstar) for 1 year performance, 4th for 3 year performance at 1st for 5 year performance. These are not easy feats.

So while Japan and the Pacific region will undoubtedly present ample opportunity for investors with the capacity to invest considerable sums there, the average investor is best putting their money where the knowledge lies. In that case, there can be few if any options better than Matthews Asia Pacific fund. Strongly recommended a part of the specialty class of one’s portfolio.