It's been two months since Conde Nast floated its first very expensive issue of Portfolio. Soon, the closing begins on the second issue. So how's it going? "It's demoralizing to work for a magazine that has such a high profile pre-launch, incredible hype about the money they're spending, and great names," said one person familiar with the workings and friendly with the staff of the magazine. "Then they come out with an issue that everybody slams. It was such a profound misfire that you'd have to think that everybody there doesn't know what kind of magazine they need to do."