2019 Performance Review

United Technologies ("UTX") United Technologies We exited our position in UTX after the company announced a value-destructive merger with Raytheon Investment thesis to unlock the conglomerate discount was on track High-quality industrial conglomerate with market-leading businesses in aerospace, elevators and HVAC that would benefit from separation into three focused businesses ► Privately engaged with management to help catalyze a separation UTX entered into a value-destructive aerospace merger with Raytheon ▸ Implied valuation of UTX's crown-jewel aerospace business was a significant discount to intrinsic value Antithetical to the company's articulated rationale for a separation We lost confidence in management Regaining confidence in capital allocation and strategic direction would have required us to engage in a comprehensive battle to replace company's leadership We decided to exit our position at a small profit and redeploy our capital elsewhere rather than fight the transaction and replace management 57

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