Waterloo's dam Lakewood was a descendant of Orama, making her a close relative of the 2000 Guineas winner Nearula and the Australian champion Todman.
[2] The filly was sent into training with Bill Watts at Richmond, North Yorkshire and raced in the colours of Richard Stanley's wife, Susan.
After winning on her debut, Waterloo was sent to Royal Ascot in June where she won the Queen Mary Stakes by six lengths at odds of 9/2.
[5] Waterloo began her three-year-old season by finishing third to the colts High Top and My Brief in the Classic Trial at Thirsk Racecourse having been eased down in the closing stages.
Ridden as usual by Hide, she took the lead a quarter of a mile from the finish and won by two lengths from Marisela and Rose Dubarry.