Bermuda will be wound up after its notable money manager, Mr. Michael Steinhardt, said he was calling it quits.

Steinhardt Overseas Fund Ltd. is one of four Steinhardt funds that collectively total more than $2.6 billion in assets.

Retired Bank of Bermuda president Mr. Donald Lines is chairman of the fund and senior bank officers serve as directors.

Meanwhile, Mr. Steinhardt, the money manager who said his main hedge fund returned 24.3 percent a year over the past 28 years, wrote in a letter to his partners: "After devoting the last 28 years to managing the Steinhardt funds, I have decided that the end of this year will be the time to turn my energies to new projects.'' Bank of Bermuda vice president and general manager of Corporate Trust, Mr.

David Smith, said,"It is an orderly liquidation caused by his retirement. It will be wound up in an orderly fashion, although we are not sure of the time frame.

"This particular Bermuda fund has only been in existence for about four years.'' Steinhardt's funds consist of Steinhardt Partners L.P., Institutional Partners L.P., SP International S.A. and Steinhardt Overseas Fund Ltd. The funds manage a total of more than $2.6 billion in assets.

The four funds are up about 19.9 percent through the end of September, which is less than the Standard & Poors 500 index. His funds, which will be sold off with most of the proceeds being distributed to investors by year-end, normally return twice as much as the S&P 500.

Bloomberg reported this week that Steinhardt had two sub par years and quoted him as confessing that he's tired of the "intensity required to manage the funds.'' Steinhardt last year agreed to pay $40 million to settle US Justice Department and Securities and Exchange Commission investigations over alleged manipulations in 1991 of the market for US Treasury notes.