Activist investment firms bounced back to notch an average 20.2% return in 2023 following a previous year of losses, with ValueAct Capital (39%), Caligan Partners (37%), and Legion Partners Asset Management (35%), leading the way, according to a report by Reuters.

The report cites data from Hedge Fund Research as revealing that in 2022, activist funds lost an average of 16%.

Other activists reporting strong gains include JANA Partners (31%), Engaged Capital (29%), Sachem Head Capital Management (24%) and Corvex Select Equity fund (21%), while Bill Ackman's Pershing Square Holdings notched a 27% gain.

Multi-strategy firm Anson Funds Management meanwhile, which is currently building out its activism strategy, gained 18%, according to an unnamed investor.

The average gain for activists trailed last year's S&P 500 24% gain, but the average loss in 2022 was also not as sharp as the S&P's 18% decline.