Author Topic: 2 and 20 in Jackson Hole, WY  (Read 3995 times)

hodedofome

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2 and 20 in Jackson Hole, WY
« on: October 24, 2014, 09:03:23 PM »
Y'all ever hear of these people? The running joke in Jackson Hole is that it's full of 2 and 20s. 2 people from NYC will spend $20 million on a house that they will spend 2 weeks out of the year at. Stupid.

DrowsyBee

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Re: 2 and 20 in Jackson Hole, WY
« Reply #1 on: October 25, 2014, 10:57:36 PM »
When I went to Jackson Hole, I stopped dead in my tracks when I glanced at some prices in a window for houses there.

I mean, if I had a spare $20 million laying around, I'd probably go for it and live comfortably in Jackson for the rest of my life.

To think people only spend two weeks of the year there is sad. Hey, maybe they can pay me to house sit for them for the other 50 weeks.

No Name Guy

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Re: 2 and 20 in Jackson Hole, WY
« Reply #2 on: October 26, 2014, 01:32:42 PM »
Ahem. 

Yes, Jackson Hole is full of 2 and 20 people from NYC.  Only it's not for what you describe there hodedofome.

http://www.divestopedia.com/definition/820/2-and-20-fee-structure

Quote
The 2 and 20 fee structure is the way that most private equity firms are compensated. The 2 represents the 2% annual management fee on capital deployed that is used to pay salaries, cover overheads, and generally keep the lights on. The 20% represents the carry over a certain return threshold that the private equity firm gets to keep.

voidmain

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Re: 2 and 20 in Jackson Hole, WY
« Reply #3 on: October 26, 2014, 02:02:18 PM »
Ahem. 
Yes, Jackson Hole is full of 2 and 20 people from NYC.  Only it's not for what you describe there hodedofome.

Yea, if I heard "2 and 20 folks" I would think they were talking about Hedge Funds/Private Equity

gimp

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Re: 2 and 20 in Jackson Hole, WY
« Reply #4 on: October 27, 2014, 11:32:16 AM »
That's why the 2 and 20 joke is funny, because they're the ones getting fleeced for once.

Jackson Hole is great, but personally I think Cody is prettier. But if I wanted a tiny little town to relax, I'd probably go for one of the myriad tiny towns dotted along the main routes with easy driving access. Sure, you'll have to travel a little to ski, but have you seen how ridiculously fucking beautiful that drive is?

No Name Guy

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Re: 2 and 20 in Jackson Hole, WY
« Reply #5 on: October 27, 2014, 01:33:25 PM »
Sure, you'll have to travel a little to ski, but have you seen how ridiculously fucking beautiful that drive is?

Yeah, drove south out of Yellowstone, through Grand Teton NP to Jackson Hole last month.....all the Aspens were in their fall color glory.  Quite a beautiful area - I can see why 2 & 20 types would want a place there - heck, for my values (prefers the works of nature to man), anywhere would be better than the concrete and steel shit hole that is NYC, but that's beside the point.

One of the funny things (IMO) about JH - lots of the "caters to rich bastards" businesses (centered 43.479612,-110.762365) had help wanted signs that indicated that, for full time employees, housing was either included or available. 

Note that the businesses that supported the plebes who worked in the caters to rich bastards businesses seemed to be clustered over here (43.473508,-110.788457).  Must not have the Kmart anywhere near the art galleries, after all.

gimp

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Re: 2 and 20 in Jackson Hole, WY
« Reply #6 on: October 27, 2014, 01:59:29 PM »
If I had that sort of money, I would absolutely have a house in a place like that. Now, probably not JH because if I had that sort of money the last place I'd want a house would be next to other people (especially people who have that sort of money.) There are a lot of beautiful and mostly empty mountains in the rockies, both US and Canada. Though I think I'd get a lot more use out of the place by having friends and family use it when I wasn't... and I'd probably spend the $20m on a lot of land and a small cabin, instead of a big house and a small bit of land.

In the grand scheme of things, the ridiculous money paid for these places and their upkeep goes to support a whole community, and it keeps one of the most beautiful places in the US well funded to make sure it stays beautiful. Property tax will pay for a lot of park rangers, cleanup crew, search and rescue, conservation efforts, enforcement, etc. Club dues will make sure ski areas stay nice enough that people don't start expanding out and fucking up the rest of the mountain. HOAs will ensure not too many people are able to build houses and roads, especially in the mountains.

I find the Fed's speeches in Jackson Hole a very interesting phenomenon - it takes the city-dwellers who are at the absolute top of the game, and brings them out into the mountains for some small-town charm. A reminder of the better things in life, and life outside of concrete. Very USA, you know?

Got any photos, No Name Guy?

hodedofome

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Re: 2 and 20 in Jackson Hole, WY
« Reply #7 on: October 27, 2014, 08:58:09 PM »

Ahem. 

Yes, Jackson Hole is full of 2 and 20 people from NYC.  Only it's not for what you describe there hodedofome.

http://www.divestopedia.com/definition/820/2-and-20-fee-structure

Quote
The 2 and 20 fee structure is the way that most private equity firms are compensated. The 2 represents the 2% annual management fee on capital deployed that is used to pay salaries, cover overheads, and generally keep the lights on. The 20% represents the carry over a certain return threshold that the private equity firm gets to keep.

What I describe is accurate and was mentioned by a few real estate agents in JH. It's a running joke and accurately describes how often these houses are used and how much money is spent on them.

I know all about the regular 2 and 20 as I am a trader and my bro in law works for a hedge fund charging the same. He just bought a $4 mil condo in Utah, not quite what the folks are spending in JH...