ARLINGTON HEIGHTS, Ill. - At the time, his loss by inches in the 2007 Stars and Stripes Handicap seemed just like a tough beat for the venerable grass horse Cloudy's Knight, but in retrospect, it seems surprising that Cloudy's Knight was beaten at all. By year's end, Cloudy's Knight had evolved into one of the better 12-furlong horses in North America, capping his campaign with a victory in the Grade 1 Canadian International.