You could use the edge finding tool holder to mount a 3/8 shank tool, however there are a couple of potential issues to be aware of. The set screws are both located on the same side. This means that tightening them enough to hold a tool will tend to push the tool off center. You should make sure that the amount of runout on the tool shank is acceptable before you use it.
Second, the set screws are not going to hold the tool as tightly as a collet does. This means that there could be issues with the tool pulling out of the tool holder. I have not tested this setup so I am not sure what the limits are. I would start with machining softer materials such as wax or soft wood then work your way up. You should be able to see if the tool stick-out is changing using the tool probe.
Jonathan