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Helped by a $90 billion government stimulus package, the performance of Japan’s stock market has been spectacular in the past 12 months, nailing down a 40% return for investors. Bid Japan sayonara? Not according to Stephen Silverman, head of the Merrill Lynch Pacific Fund, which has scored a 546% total return over the past ten years. That makes it the champ of all mutual funds. Silverman, a former U.S. Marine Corps first lieutenant who commanded a missile battery, keeps about 65% of his assets in Japan, with the rest scattered throughout Asia. He tells Fortune’s Joshua Mendes which Japanese investment targets he has in his sights.