Rhombus Capital, the $200 million New York-based media- and telecom-focused hedge fund shop, is shutting its doors on Jan. 1, rolling its assets into SAC Capital. Rhombus is said to be folding because of difficulties in attracting and retaining investors.

Rhombus founder David Fiszel left the Greenwich, Conn.-based hedge fund giant almost four years ago to set up his own shop, and has decided to return to the firm, where he was a top portfolio manager.

“We’re rolling up into SAC and taking our LPs and some of our employees with us,” said Fiszel. “It’s a really great outcome for investors because they get to participate in our performance going forward, and we’ll get a much larger pool of capital, which is always fun.”

Fiszel rejoins SAC a portfolio manager on its $5 billion Multi-Strategy Fund.

The firm launched its flagship Rhombus Capital Overseas Fund in mid-2004 with more than $250 million, and is up 15.3% year-to-date through October, but the firm now manages about $200 million. The firm also reopened its Dark Horse fund to new investors in August.

Rhombus’ demise was first reported in Hedge Fund Alert.

Prior to joining SAC, Fiszel served as a partner at Leon Cooperman’s Omega Advisors.