A man named Timothy in the parish of Llanarth, Cardiganshire, told me that an old woman known as Nancy Tynllain and her son, Shenkin Phillips, had seen the Tylwyth Teg (fairies) on one occasion. Nancy died over sixty years ago. She and her son one day left home rather early in the morning, as they were going to Cynon's Fair, and had some distance to go. As they proceeded on their horses in the direction of Wilgarn, they saw the Fairies, mounted on small horses, galloping round and round as in a circle round about a certain hillock, and Nancy took particular notice that one of the Fairy women had a red cloak on. As the old woman and her son were looking on, watching the movements of the Fairies, Nancy remarked, "That Fairy woman over there rides very much like myself." This was at early dawn.
A red cloak is a common fairy fashion, but I can't shed light on Nancy's other interesting remark. I think it's fairly likely the 'certain hillock' is Whilgarn itself, but that this wouldn't have been realised by the person recording the story if they didn't know Whilgarn was a mound, it might sound like a village.
From 'Folk-lore of West and Mid-Wales' by John C Davies (1911).