Actually, you are right about that. And I guess we need to break funds down into more categories. You are right that very large funds have no incentive to kill their golden egg. But I also don't believe they are necessarily buying convexity either. They are more often then not in the more conservative buy and hold crowd with less leverage. Perhaps their "convexity" is coming from the private equity space. But smaller funds are NOT making anything on their 2%. They need to generate returns and most will bleed to death if they are waiting for a long gamma bet to pay off. Bankers however get no such management fee. They get to earn a cut of their p&l if they are right and lose nothing if they are wrong. Truly the most blessed among us.