NEW YORK, Sept 3 (Reuters) - Hedge fund Schonfeld

Strategic Advisors' flagship fund Strategic Partners was up 1%

in August while its Fundamental Equity fund gained 0.5%,

according to a source familiar with the matter.

Year to date, Strategic Partners and Fundamental Equity are

up 11.8% and 11.7% respectively.

August posed some challenges for portfolio managers. After a

brutal selloff in global markets in the beginning of the month,

hedge funds retrenched from some of their riskier positions to

deal with a volatile environment.