The Bon Ho-owned gelding went in to 'the race that stops the nation' as the favourite following some fine performances over middle distances on home soil in the summer.
Ridden by Kerrin McEvoy, Deauville Legend ran a creditable race on his first attempt at two miles but had to settle for fourth, beaten five lengths, as the Cup went the way of the Ciaron Maher and David Eustace-trained Gold Trip.
Ferguson believes the testing conditions at Flemington took their toll on his charge, but is the nevertheless proud of his performance.
"The Melbourne Cup carnival is a huge event and there is lots of enthusiasm for racing in Australia. It was fun to be there, and I think the horse ran really well, it's just a shame the ground went soft on the day," said the Kremlin Cottage handler.
"He ran a solid race and the winner had solid form during the campaign having finished second in the Caufield Cup so credit to them, he was definitely a good winner because of the way he did it.
"Certainly, the ground wasn't soft, it was heavy, so it was hard work for a three-year-old. Whether he stayed two miles on that ground is a question mark and he was probably carrying a little bit too much weight. At the end of the day, he was given quite a high weight and that probably had something to do with it as well."
Ferguson, who is in just his fourth year with a training licence, suggests that the son of Seas The Stars has done enough for this year, but is relishing the prospect of campaigning him at Group One level as a four-year-old where he believes he is more than capable of making his mark.
He continued: "We'll see how he comes home and see how he gets over the race and work on a plan. He's probably done for the year, but I will discuss that with the owner.
"The mile and a half division is going to be slightly different next year with a few of the older horses retiring and I certainly think he is Group One level - I think he is good enough to win one.
"He is an exciting horse for next year and one that can hopefully take us around the world. I think travelling down to Australia will have done him mentally a world of good.
"I think he went there a boy and he'll be coming back a man."
While the dust was settling on Deauville Legend's Melbourne Cup adventure, his stablemate Mise En Scene was preparing for Breeders' Cup action at Keeneland in the Filly And Mare Turf
Her trainer was delighted to see the daughter of Siyouni finish a respectable sixth and revealed she will now stay in America to continue her career Stateside.
"I always knew she was that good and she ran to a level I thought she was capable of," said Ferguson.
"She is certainly a Group One contender, I just feel things haven't gone quite right for her in England this year - I had to give her a bit of a break over the summer and be patient with her.
"I was absolutely delighted with that run, and I thought Cieren (Fallon) gave her a lovely ride - considering it was his first ride at the Breeders' Cup I thought he did excellently.
"She's staying out there and I wish her new trainer all the luck in the world, I'm really looking forward to seeing what she does next year."