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Waldgeist came with a late run under Pierre-Charles Boudot to deny Enable a historic third victory in the Prix de l'Arc de Triomphe.
Held up in the early stages, Waldgeist , who relished the testing going, looked beaten a furlong out as Enable hit the front under a confident Frankie Dettori.
But he was angled wide by Boudot and picked up in fine style to foil the hat-trick bid of John Gosden's mare and provide trainer Andre Fabre with his eighth victory in the race.
Fabre, who recorded his first Arc winner in 1987 with Trempolino, said: "I'm very proud that Waldgeist managed to beat such a fantastic mare. I'm delighted. He gave me a lot of confidence at Ascot and Pierre-Charles said he could have won.
"The Arc is always a big race because you have the combination of the best mares and colts and it's a great race."
Gosden, who was looking for his fourth win in the race in the last five years, remained upbeat after Enable after her defeat.
He said: "She ran an absolutely brilliant race. Waldgeist came late and strong after they went a good pace. Frankie committed and went for it and with the ground testing her, it's hard to show that turn of foot and Waldgeist has outstayed her on the ground. Full credit to Andre [Fabre].
"I'm happy with the race but she doesn't have the same explosive turn of foot on soft, she quickened up well but was outstayed in very testing conditions."
Teddy Grimthorpe, racing manager to owner Khalid Abdullah, added: "She's run a super race and just got outstayed on sticky ground. She's been the most fantastic filly and Prince Khalid has enjoyed every moment with her.
"We have to accept defeat in racing. Prince Khalid will make a decision on her future – he will want to reflect and give it some good thought."
Paddy Power shortened Waldgeist into 5-1 (from 10) for the Breeders' Cup Turf.
