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News January 10, 2008, 5:00PM EST

Mauled By Bear Stearns

(page 2 of 2)

To avoid Britain's capital-gains tax, he moved to the Bahamas and began speculating in foreign currencies. His first big score was in 1992, after he bet on a falling British pound, the same type of trade that famously made George Soros billions "breaking the Bank of England." Lewis went on to short the Mexican peso in 1994, profiting from that country's economic crisis. Those bets turned millions into billions for Lewis, whose personal wealth now stands at more than $2 billion.

Today, Lewis, who still has a Cockney accent, puts much of his fortune to work through Tavistock, where he leaves the day-to-day stuff to his managers. Although he meets with the board of directors to discuss macroeconomic trends in countries and industries that will affect his business or investments, Lewis is just as likely to call up a portfolio manager for an informal chat about an idea or to host a dinner simply for a brainstorming session. "He probably fears for the organization, the larger it gets," says Rasesh Thakkar, senior managing director at Tavistock. "He doesn't want it to get bureaucratic and lose its nimbleness."

Lewis' base now centers around his Windermere (Fla.) home, which doubles as Tavistock headquarters. He stumbled upon the Orlando area while negotiating in the 1980s with Disney World to manage an English-themed restaurant on the park's grounds. The deal never panned out, but Lewis thought the region had untapped potential. In 1993 he purchased Isleworth out of bankruptcy for $21 million and transformed the struggling gated community into a thriving one, wooing actors and professional athletes, including basketball star Shaquille O'Neal and golfers Tiger Woods and Ernie Els. Isleworth is now one of the most sought-after addresses in Florida, where a three-bedroom, three-bath, 2,800 square-foot golf villa sells for $1.5 million.

BIOTECH BUILDUP

As with Isleworth, Lewis bought a nearby property, Lake Nona, at a cut-rate price and turned it into a high-end, 7,000-acre planned community. He is currently making it a hub for biotechnology, helping to lure a medical school, a research center, and an ultramodern veterans hospital to the area. "Lewis and his team had a vision for life sciences in Orlando," says Ray Gilley, head of the Metro Orlando Economic Development Commission.

Of course, Lewis benefits. He now has close connections with the academics and researchers settling in Lake Nona—a plus, considering he owns stakes in several small pharmaceutical companies. By anchoring the development with a medical complex, Lewis hopes to distinguish Lake Nona from the usual suburban sprawl, and perhaps insulate it from the whims of the real estate market. Says University of Central Florida President John Hitt: "He created a lot of value for us and for himself."

He is no doubt hoping Bear will create value for his portfolio as well. And although doubters could certainly make a case it's an ill-fated investment, Lewis isn't the type of person to second guess his decisions. "If he loves an idea, he empowers the people and [marshals the] resources needed to make it work," says Tavistock's Thakkar. Then, he "moves on to the next great idea."

With Frederick F. Jespersen and Matthew Goldstein in New York

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