Portfolio magazine, the two-year-old Conde Nast business monthly, has folded as of this morning. Thus far, there's been no official word on whether Web site Portfolio.com will live on in any capacity, but it's not looking likely, as there's no mention of future plans for the site in an early report from Portfolio.com media blogger Jeff Bercovici, in which he details that Portfolio editor Joanne Lipman learned of the magazine's closure from Conde Nast chairman S.I. Newhouse Jr. just this morning. Silicon Alley Insider's Nicholas Carlson reports that staffers were called into a meeting with Conde executives where they were told the magazine will be shuttered and "there was a round of applause" for the embattled Lipman.

Portfolio launched two years ago with a large budget and a slew of big-name contributors. Its high profile made Portfolio the target of endless speculation from media watchers, with rumors of its potential closure floating around for some time. This month's issue of Portfolio had the smallest number of ad pages in the magazine's history. We'll update you with more news as this story develops...

Update: Full memo from Conde on Portfolio's closure and word on the number of casualties...

Peter Kafka just posted a memo from Conde Nast publisher David Carey on AllThingsD saying:

"Earlier today, Conde Nast announced, quite regrettably, that it is pulling back from its investment in Portfolio.

For this high-profile, 21-issue launch, the recession has helped and hurt the brand. While the unprecedented nature of these times has made business and the economy the main topic of conversation, it has also led to high levels of uncertainty and a tremendous reduction in ad spend in the five key sectors Portfolio's business model depends on.

The company is deeply grateful to Portfolio's readers and for the broad support of marketers and executives all around the country."

Update #2: BusinessWeek's Jon Fine has some more info about this morning's meeting. He reports that a Conde Nast spokeswoman said all 85 of Portfolio's staffers including Lipman and publisher William Li will be leaving the company.