A breakup of Honeywell's businesses could result in major upside for the blue chip stock over the next two years, the activist investor says.

The conglomerate serves various business-to-business customers in manufacturing, energy, logistics and warehouses, healthcare, and more. When the business is right, Honeywell is a highly diversified cash cow that can offset the cyclical nature of some of these end markets by offering a broad range of products and services.

The fund, which often seeks changes to strategy or corporate structure, believes that Honeywell should break apart into two companies, one serving the aerospace market and another