Fatheaded beast, but understood to be sly (3)
I believe the answer is:
fox
'understood to be sly' is the definition.
I can't judge whether this definition defines the answer.
'fatheaded beast' is the wordplay.
'fatheaded' becomes 'f' (this might be a standard abbreviation of which I'm unaware).
'beast' becomes 'ox'.
'f'+'ox'='FOX'
'but' is the link.
Can you help me to learn more?
(Other definitions for fox that I've seen before include "Hunted animal" , "Sly type" , "Puzzle" , "earth-dweller" , "Vulpine creature" .)