When the first issue of EuroHedge was published in January 1999, the small handful of European hedge funds in existence managed $15bn between them. To call it an industry would have been an exaggeration.

In trading terms, the magazine’s launch was a long bet on the prospects of a tiny corner of asset management which used sophisticated investing techniques to post high returns. Having noticed the growth in American hedge funds, the founders of this magazine believed it might just catch on in Europe.

The cover of our twentieth anniversary report

It proved a worthwhile trade. From a humble start, Europe’s community of hedge funds has grown into an industry managing more than half a trillion dollars in offshore funds, and plenty more in Ucits and other product types besides. Fortunes have been made, big bets won and lost, and countless headlines printed as hedge funds became a powerful force in financial markets.

It has become an institutionalised industry. After initially focusing on wealthy individuals and family offices, funds now draw most of their capital from retirement and sovereign wealth funds, insurers and other institutions. The shift accelerated after 2008 as the operational spotlight intensified and the influence of funds of hedge funds waned. Firms such as Marshall Wace, Man Group and CQS now manage billions for pensioners around the world.

The special edition of EuroHedge we have produced does not merely commemorate our twentieth anniversary, proud as we are at reaching the landmark. We have spoken to some of Europe’s leading names to take stock of the industry’s progress so far, explore its present and, most importantly, analyse what the future holds.

The first chapter contains interviews with most of the industry’s leading names who were in business in 1999, our first year. As research by HFM Insights reveals, 10 firms with current assets of more than $3bn have been trading since then – representing the pioneers of the industry. We have also spoken to several managers who started subsequently, including Leda Braga and Alan Howard, who have made a similarly considerable impact.

We provide an industry chronicle in the second chapter, highlighting the key moments from the past 20 years. EuroHedge has been there every step of the way, recording the ups and downs in print and online, and bringing the industry together at its events every year, as my colleague Nick Evans documents. We also look back in detail at the cataclysmic events of 2008.

The third chapter is given over to investors, the bedrock of the industry, and the impact of the march of institutions. In the fourth chapter we explore the operational changes that have defined the past 20 years and technical challenges that continue to set the agenda.

Thank you to all our interviewees for their involvement and to our sponsors for their support. Most importantly, thanks to you, our readers, for supporting the magazine, attending our events and enabling the growth of this dynamic industry.

If the last 20 years are anything to go by, the next 20 will be quite a ride.

EuroHedge at 20: From humble beginnings to institutional industry on EuroHedge.