In the best of all possible worlds, hedge funds wouldn’t need to worry about mass investor redemptions. But not taking any chances, D.E. Shaw Group reportedly has lowered the amount that investors can take out from one-eighth of their assets to 1/12th of their account. Citing two anonymous investors in Shaw’s global macro Oculus, MarketWatch says the new "gate," effective Jan. 1, is aimed at ensuring that a stampede of investors looking to withdraw their money won’t force the $25 billion firm to sell some of its positions to pay them – though the move is not being viewed as in anticipation of such an event. While one investor interviewed by MarketWatch was concerned about the change, making it more difficult to get his money if needed, others say it is coming as the firm is moving more into private equity, which typically has longer lock-up periods. Observers say such modifications are not as unusual as they appear, as a growing number of hedge funds expand into private equity. "The gate provision allows the manager to increase exposure to illiquid assets without facing liquidity crises as a redemption date approaches," according to Stephanie Breslow and Paul Gutman of the law firm Schulte Roth & Zabel.