NEW YORK (CNNMoney.com) - Yale University pulled out its $500 million investment in the UK-based Children's Investment (TCI) Fund Management LLP, after concerns that the university's position in the hedge fund had grown too large, a newspaper reported Wednesday. The university's $200 million investment more than doubled since January 2004 when Christopher Hohn launched the fund, according to the Wall Street Journal.

Hohn, who previously worked at New York-based Perry Capital, manages $7.5 billion in the TCI fund. Yale's withdrawn funds will likely be replaced by another investor.

TCI Fund takes a smaller cut of investors' profits than other hedge funds in exchange for allowing the fund to hold the money longer. Hohn recently scrapped a plan to raise fees on money allocated for five years to the same rate it charges on money allocated for three years after some investors complained.

Last year, TCI helped force the resignation of the CEO of Deutsche Borse, of which TCI held a large share, after the German exchange's chief executive Werner Seifert refused to abandon a planned takeover of the London Stock Exchange.

Yale reaped a 22.3 percent return in 2005 on its $15.2 billion endowment, thanks in part to its use of hedge funds. The funds account for more than the 17.6 percent average found in university endowment portfolios. Yale University's investments in a hedge-fund often serve as a seal of approval; one that other big institutions follow, the Journal reported.

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