FILE PHOTO: A Honeywell logo is pictured on the company booth during the European Business Aviation Convention & Exhibition (EBACE) at Cointrin airport in Geneva, Switzerland, May 24, 2016. REUTERS/Denis Balibouse

NEW YORK (Reuters) - Third Point LLC said Honeywell International Inc. HON.N should separate its aerospace division, a move that would create more than $20 billion in shareholder value, according to the hedge fund.

Third Point, 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 CRDI.MI and German utility E.ON EONGn.DE, the firm said in its letter. During the first three months of the year, Third Point earned a 5.9 percent return, it said.