Both, actually, auchen. Fred referred to a particular individual who raced on a normal-ish bike and wore non-cycling clothes, and proceeded to do quite well in races. Fred ended up being a disparaging name for someone who doesn't match his bike, either in the original sense (a "sleeper"), or in the opposite sense (someone with all the fancy equipment and lycra, but is really slow).

EDIT: There's a Wiki on it and I'm not exactly correct, but the idea is there.