The encryption standards it uses are pretty good, but that is not where blanket whole-disk encryption (which I assume you're talking about) fail. For example, hackers could analyze the preboot environment of an encrypted mac and sniff out the password using a variety of methods. Simply put, whole-disk encryption is too complicated and bug-prone process to really trust to closed-source software.
As for single-file encryption, which is relatively neat and simple, Disk Utility would probably do a pretty good job.