khudsonboobs.jpg Kate Hudson may claim to be proud of her small breasts, but it seems like the actress has caved in and gone under the knife!

An insider tells Us Weekly that Hudson underwent a breast augmentation in late March, and another source adds, "Kate makes jokes about her boobs, but her chest has always been one of her biggest insecurities."

We snapped the actress out and about in Malibu the other day, and while her chest was covered up with a sweater, it wasn't obvious to us that she had anything done. Maybe subtlety is the key here? Or is this report just a bunch of bs?