Andor Capital shutting down in October

BOSTON, Aug 20 (Reuters) - Andor Capital Management, a $2 billion hedge fund run by star manager Dan Benton, said on Wednesday it will shut down in October and return all funds to its investors.

Benton, who earned a reputation for picking technology stock winners, wrote to his clients that "after 24 years in the investment business, I have decided to retire from managing outside capital" to devote more time to family and other interests.

The fund will continue investing until September 30, "at which time the fund assets will be fully liquidated," Benton told clients in a letter obtained by Reuters.

A call to the hedge fund was not immediately returned.

Benton has made headlines with prominent splits from former business partners. Four years ago he split with Chris James, his former chief investment officer, and seven years ago he broke off from Art Samberg where he had helped develop Pequot Capital into one of the industry's biggest funds.

Andor has counted Calpers, the biggest U.S. pension fund among its investors, but recently the fund suffered losses as the credit crisis widened and stock prices tumbled. (Reporting by Svea Herbst-Bayliss, editing by Richard Chang)