Activist investor Elliott Investment Management stated in a letter addressed to Honeywell’s Board of Directors that it wants Honeywell International Inc. to spin-off its Aerospace Technologies business.

Honeywell International stock has returned 25% in the last 5 years, a significant underperformance to the S&P 500 Industrials’ 76% return. Thus subdued share price, the recent bullish momentum, and a $5 billion stake by activist investor Elliott Management are three good reasons why buying the stock at current levels is worth it.

The activist investor, which has amassed a $5 billion stake, is calling for big changes. Honeywell shares were up about 5% on the news.

Honeywell does not seem to have got the memo that conglomerates have become achingly unfashionable. At a time when the global trend is for industrial empires to break up and generate returns by specialising in a single area of business, boss Vimal Kapur has been bulking up.

The push comes as new Honeywell CEO Vimal Kapur has led an aggressive repositioning with mergers, acquisitions and spinoffs.

Activist investor Elliott Investment Management has built a $5 billion-plus position in industrials giant Honeywell International Inc., according to people with knowledge of the matter.

It argues that separating Honeywell would lead to simplified strategies, focused management, enhanced capital allocation and better operational performance.