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Andor Capital Management LLC, a hedge fund controlling about $2 billion in assets that was spun off from Arthur Samberg’s Pequot Capital Management Inc. in 2001, is closing down and returning money to investors.

Andor co-founder Daniel Benton, who made his name as a prominent technology investor at Pequot and as a technology analyst at Goldman Sachs before that, is retiring from managing outside capital after 24 years, he told investors in a letter Wednesday.

“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,” according to the letter, which was reviewed by The Wall Street Journal.

Andor’s stock fund has lost money this year amid the market turbulence that has caused troubles for many hedge funds. Investors in the Greenwich, Conn.-based firm will receive money back starting in October, according to the letter.

Mr. Benton had a high-profile split with Andor’s co-founder, Christopher James, in 2004. The firm had more than $6 billion in assets at that time and was going through a rough period after posting strong returns.

Messages left for Andor executives weren’t immediately returned.