Third Point said Honeywell International should separate its aerospace division, a move that would create more than $20 billion in shareholder value, according to the hedge fund.
Third Point (TPRE), which disclosed its view on the industrial conglomerate in the hedge fund’s first-quarter letter, owned 1.4 million shares of the company as of Dec. 31, 2016, according to the firm’s quarterly filing.
The $16 billion hedge fund also told investors that it sees more opportunities in Europe and is positioned to absorb a modest sell-off in U.S. stocks.
Third Point took a position in Italian bank Unicredit Spa and German utility E.ON, the firm said in its letter. During the first three months of the year, Third Point earned a 5.9 percent return, it said.
Get Data Sheet, Fortune’s technology newsletter.