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How this bond fund beats the Street

The Eaton Vance Global Macro Absolute Return Advantage Fund is up 6 percent in the last year and its manager credits the team's long and short approach to global markets for its success.

It's currently beating its benchmark, the Barclays Capital U.S. Aggregate Bond Index, which is down more than 8 percent in the same time period.

"We focus on country picking. We're really looking around the world at frontier, emerging and developed markets, and looking to take long and short positions in bond and currency markets," Eric Stein said in an interview with "Closing Bell."

Right now, he likes interest rates in New Zealand, Poland and Brazil. He doesn't like the United States and Japan as much.

In fact, Stein thinks the end of the great bull market in U.S. bonds will probably happen this year if the Federal Reserve hikes interest rates.

"If they raise rates, I think you will see the front end of the curve sell off," he said.

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While the Fed is looking to boost interest rates as the economy improves, other central banks around the world are easing. That divergence in monetary policy globally, along with an increase in volatility over the last couple of months has provided Stein better opportunities, he said.

"We're always looking for countries that are either improving their fundamentals where we can take long positions or in countries where fundamentals are going the other way that we can take short positions."