Not performance in the technical sense, the BuddyPress Activity Filter doesn’t make your database queries faster. What it improves is relevance: it lets members narrow a busy activity stream down to what they actually care about, which is a real usability win even if it’s not a server-load fix.
What It Filters By

Activity type, specific users, groups, and date range, with support for combining multiple filters at once. Selecting a filter updates the stream immediately, no page reload.

Filter settings are per-user, so each member gets their own view without affecting anyone else’s. It’s responsive across desktop and mobile, and works alongside groups and friend connections rather than replacing anything in core BuddyPress.
One Thing Worth Flagging
The plugin’s own compatibility listing shows it tested up to BuddyPress v12.4.0, and its last update was several months back as of this writing. Not abandoned, but on the slower-moving side, worth a quick compatibility check on staging if you’re running a recent BuddyPress release before rolling it out site-wide.
Pricing
Free. Wbcom Designs also sells premium add-ons that extend it further, listed on the product page.