(Reuters) - Hedge fund investor Mark Yusko, who once headed the University of North Carolina's endowment fund, has stepped down as investment chief of his $3.5 billion joint-venture Endowment Fund, a source familiar with the matter said on Tuesday.
The Endowment Fund, which was designed to replicate how successful institutions like Yale University invest, was founded by Morgan Creek Capital, the investment firm Yusko founded in 2004, and Salient Partners, a Houston-based investment firm.
Yusko told investors that a change was appropriate after friction had surfaced over how to best manage the fund, the source said.
The Endowment Fund began limiting how much money investors could pull out late last year, after investors disappointed with lackluster returns tried to redeem some of their money.
Morgan Creek has roughly $7 billion in assets.
(Reporting by Svea Herbst-Bayliss; Editing by Richard Chang)