US Stock Market Move | Snap (SNAP.US) rises over 6% as hedge fund urges bringing in outside capital for Specs, which could unlock shareholder value.

On Friday, Snap (SNAP.US) rose over 6% to $6.24. On the news front, hedge fund Blue Duck Capital Partners wants Snap Inc. to sell a partial stake in its Specs business to raise capital. Blue Duck Chief Investment Officer Alex Beinfeld said in a recent letter to Snap's board that Snap is "severely" undervalued and that raising funds for Specs would unlock considerable shareholder value. He said a financing centered on Specs would help support related spending without diluting Snap's share count and would preserve its cash flow. Not only that, it could help the company lower the roughly $2,200 price of Specs. He believes that selling a 20% stake in the Specs subsidiary at a $5 billion valuation would raise $1 billion, enough to support the unit's spending for about two years.