Platinum Capital, the equity fund managed by the $18 billion Kerr Neilson-led Platinum Investment Management firm, has maintained its confidence in emerging markets despite the recent slowdown in Asian markets.

"The promise of the emerging markets, while somewhat begrimed for now, can in due course be expected to be burnished by their superior growth credentials," the firm said in its quarterly report launched at the Australian Securities Exchange on Friday.

But the firm did expect lower growth.

"In this age of retrenchment, the rallying slogans of the bull market will gradually recede. Instead it will be a world of earnings revisions that are more likely to be down than up," the firm said.

Platinum Capital had a number of changes in its international portfolio, including takeovers of chip-based testing company Caliper Life Sciences and sweets maker Hsu Fu Chi.

The firm said both acquisitions took place at good premiums.

It also reduced its exposure to paper and packing company IT, as well as BMW, Allianz AG and Vodafone.

Platinum added China Mobile during the September quarter 'when it was being ill-treated for its slow growth prospects'.

"On 10 times earnings and 4.5 per cent dividend yield, we are satisfied," the firm said.

Platinum increased the overall portfolio exposure to Asia from 23 per cent in June to 24 per cent at the end of September.

It also increased its exposure to North America over the same timeframe by 4 per cent to 28 per cent.

At the same time, it reduced its exposure to Europe from 25 to 22 per cent.

Platinum increased its exposure to short positions from 17 to 20 per cent at the end of September.

"As the quarter progressed, we gradually migrated our shorts towards individual companies, which have become conspicuously expensive as most cyclical names collapsed."

"We are beginning to read the changing mood of the market better and are making reasonable returns from some of our bigger exposures," the firm said.