On Friday, Snap Inc. (NYSE: SNAP) shares climbed more than 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. In a letter to Snap's board of directors, Blue Duck Chief Investment Officer Alex Beinfeld said Snap is "severely" undervalued and that raising funds for Specs would unlock considerable shareholder value.

He stated that a financing centered on Specs would help support related spending without diluting Snap's share count and would also preserve its cash flow. Beyond 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 division's spending for about two years.