Changes in US stocks | Snap (SNAP.US) rose more than 6%, hedge funds urged to introduce external capital for Specs, which is expected to release shareholder value

The Zhitong Finance App learned that on Friday, Snap (SNAP.US) rose more than 6% to $6.24. According to the news, the hedge fund Blue Duck Capital Partners wants Snap Inc. to sell part of the Specs business to raise capital. Blue Duck's chief investment officer Alex Bainfield said in a letter to Snap's board of directors a few days ago that Snap is “seriously” undervalued and that funding for Specs will release considerable shareholder value. He said financing with Specs as the core will help support related expenses, while not diluting Snap's shares and preserving its cash flow. More than that, this is expected to help the company reduce Specs' selling price by around $2,200. He believes that selling 20% of the Specs subsidiary's shares at a valuation of 5 billion US dollars will raise 1 billion US dollars, enough to support the department's expenses for about 2 years.