Hammered by the media downturn, Steve Rattner’s Quadrangle Group is closing down its media hedge fund with losses approaching 25 percent this year, WSJ reported. Quadrangle Equity Investors, run by Robert Donahue, opened in 2006 to invest in publicly traded media and communications stocks; it handled about $500 million in investments at its height. The news comes just one day after Rattner and Quadrangle hosted the high-profile, invite-only FourSquare media conference.

SEE ALSO: @ Media & Money: Keynote: Steven Rattner, Principal, Quadrangle Group

Earlier this year, another Quadrangle hedge fund split off from the PE firm. Quadrangle Group still has some other healthy business: as the Journal notes, New York City Mayor—and Rattner’s good friend—Michael Bloomberg recently put his multi-billion fortune in Quadrangle’s asset management hands. This closing may put a few chinks in Rattner’s media expert armor but it doesn’t take the company out of the media and communications business.

As for PE, Quadrangle bought Dennis Publishing’s Maxim, Stuff and Blender mags. Earlier this year, it attempted to acquire market researcher Greenfield Online, but Microsoft (NSDQ: MSFT) won. Last year, Quadrangle brought on former Yahoo COO Dan Rosensweig to start its Silicon Valley office.