His breeder was not impressed by the colt, and offered him for sale as a yearling in October 1995 at Tattersalls where he was bought for 10,000 guineas by the bloodstock agent John Warren on behalf of the trainer James Fanshawe.
[2] During the horse's racing career he was trained at the Pegasus stables in Newmarket by Fanshawe and owned by a five-man partnership from Devon called The Owl Society.
On 2 September at York Racecourse Arctic Owl carried 129 pounds the Garrowby Handicap over one and a half miles and was awarded the race on the disqualification of Honourable.
Competing in handicap races, he won over one and a half miles at Newmarket in May and then produced an exceptional performance at York in June when he carried 131 pounds to a fourteen length victory over the dual Chester Cup winner Top Cees.
[10] Later that month he started 7/4 favourite for the Northumberland Plate at Newcastle and finished third of the twenty runners, a length behind the winner Cyrian, to whom he was conceding eighteen pounds.
After being restrained in the early stages, Arctic Owl turned into the straight in second place behind the Goodwood Cup winner Grey Shot, took the lead inside the final 200 metres and won by one and a half lengths.
[12] On his first run as a five-year-old, Arctic Owl started favourite for the Yorkshire Cup on 13 May but was beaten a neck and half a length into third by Churlish Charm and Largesse.
Arctic Owl began his fourth campaign by finishing third to Persian Punch and Churlish Charm in the Henry II Stakes at Sandown on 29 May.
Arctic Owl, ridden by Johnny Murtagh, represented the European team in the one and a half mile "Classic" and came from well off the pace to win by a head from Murghem.
[15] After the race Fanshawe commented "It's a great thrill to have my first winner in Ireland, and even more so to win a Classic with a horse which we picked up originally for only 10,000 guineas at Newmarket".
[3] On his final appearance of the season, Arctic Owl was indeed shipped to Australia to contest the Melbourne Cup over 3200 metres at Flemington Racecourse on 7 November.
Starting at odds of 14/1 he was hampered on the final turn but produced a strong late run to finish fifth of the 22 runners behind Brew to whom he was conceding sixteen pounds.