Andor Capital Management, a US hedge fund managing about $2bn in assets, is to close down and return money to investors.
Daniel Benton, co-founder of Andor, is retiring from managing outside capital after 24 years in the investment business, he told investors on Wednesday in a letter seen by the Financial Times. Andor was spun off from Art Samberg’s Pequot Capital Management in 2001. He built a reputation as a leading technology investor at Pequot, following years as a star technology analyst at Goldman Sachs.
“My desire to devote more time to my family and other interests runs counter to the obligations of a hedge fund manager who must be immersed in the markets in order to meet client expectations,” Mr Benton said.
People with knowledge of Andor’s performance said its stock fund has lost some money this year amid the market turbulence that has caused troubles for many hedge funds, but was by no means among the worst performers.
Investors in Andor will receive money back starting in October, according to the letter. The fund will continue investing until the end of September after which final payments will be made following the completion of an outside audit for the period ending September 30 2008.
Mr Benton had a well-publicised split with his co-founder at Andor, Christopher James, in 2004.
A spokesman for Andor did not return calls seeking comment.